Authored by: Stephanie May, NBR Summer 2009 Intern
Any nutritionist or diet expert will say mindless eating is the worst thing you can possibly do for your diet. And, I've discovered in the past few weeks that mindless spending is just as bad. When you're not paying attention, you can finish an entire bag of potato chips (I say this from experience)... or you can spend an entire paycheck without even realizing it! Have you ever walked out of a store and realized that you've just spent 30 bucks on stuff you don't need?
As I was walking back to the office from Starbucks yesterday, I was hit like a bus by a very serious truth: I am a chronically careless spender. I looked down at my Venti Caramel Frappuccino -- which had cost me $4.50 (and more calories than I'd like to know about) -- and I wondered... what would happen if I used my Starbucks money elsewhere?
Now to be fair... my caffeine addiction has been generously funded by my amazing friends and family who have given me Starbucks gift cards over the years. But if I continue the 4-day-a-week Starbucks tradition for a month... 6 months... a year after those cards run out, how much money am I actually spending? So I crunched some numbers.
If I spend $4.50 at Starbucks 4 times a week (I know that's above average... breaking my caffeine addiction will be my next blog), I am spending $18 per week. Per month, that is $72, and per year...get ready... that is $864. That's INSANE!!!
And Starbucks definitely isn't the only indulgence draining my wallet. Think about every time you buy something you don't need. For example, I am a sucker for office supplies. I always seem to think a bigger cork board or multicolored highlighters will make me a better student (wrong). Also, when going into someplace as innocent as a gas station, I can easily spend more than 20 bucks on magazines and gum!
Now imagine if I -- and those of you religiously following this blog -- channeled all of our unnecessary spending into someplace where it could add up. A bank account for example. If we put all that money into savings, I'd venture a guess we could come up with over $1,000 per year!
That's $1,000 that didn't take us an extra month or any real effort at all to earn. It simply required taking a moment before each purchase to decide if we actually need the thing we're about to buy. Usually, the answer is "no."
Now think of all of the things we could do with $1,000 dollars per year. Start saving up for a house or a car, go on a vacation, buy a really nice present for someone we love, or give it to someone who needs it more than we do.
Mocha Club is an organization that takes 7 dollars a month -- the price of two mochas, they say -- and uses it to help people in Africa. According to the club, that 7 dollars can do a lot of good in Africa. It can feed one person for a month, educate two children for one school term, save one person's life from malaria, or provide clean water to seven Africans for a year. Isn't that a little more important than drinking those two mochas?
Now where do we get started with trimming the excess? This is where the Little Black Book comes in. I took a look at my L.B.B. from the past few weeks and realized almost all of my money is spent on food. Although some of this spending is necessary, some of it is definitely excessive. So here's my plan: I am going to start bringing my lunch to work twice a week. I figured out this change will save me $20 dollars per week, which will add up to $80 for the rest of the time I am in DC. That's a lot of payback for a tiny change in my routine.
Try it! Where can you trim some excess spending? And what would your life or somebody else's life look like if you channeled that money towards something better?
Comments
Wow, well done. My pastor Jim once said, and it will forever stick with me, that "it isn't a money issue that we face on this earth, it's a distribution issue." Now I don't think that the money we earn shouldn't be our choosing to what we do with it, but just imagine that YOUR child, YOUR mother, YOUR whoever got to eat or drink for a month for $7, or get an education, or whatever. Would you deny them of that? I hope not. I am a poor college kid (and after having the LUXURY of studying abroad and traveling, a VERY poor college kid) and my contribution is to a child through the Save the Children foundation. I pay $30 a month and Mohamoud gets food, water, electricity for his entire family, a roof, and an education. $30 for me gets me something flashy for my wardrobe since its lacking a little. Think about it people, I pay literally $1 a day exactly for all of this. Think of it that way. Its unbelievable how little can change someone else's life. Well done Intern.
These are great ideas, Stephanie; and it is very much like going on a diet; you have to do a little at a time so it stays realistic and you stick with the program.!
Keep it up; I'd like to hear more!
Hi Stephanie,
I am a good friend of your mom's and she sent me your blog info so that I could read your article. I am very impressed with the wisdom that you have discovered at your very young age! Hopefully, it will influence and encourage other young and some not so young adults to analyze their own spending habits! I looking forward with great expectation to reading your next article!
Bev Weathers
Parker, CO
It is amazing how you can gain control and feel empowered once you start realizing where money goes and that you have choices! I can tell in your writing you are getting excited about the possbilities! I especially loved the reference to someday being able to give to others as well. Hopefully you are getting to the point in your journey where it is fun to see how much you can save, a challenge to build up some savings toward a goal, a new discipline to conqer! Keep sharing your experiences, and bravo on bagging lunch. I did that years ago when I had no choice, thanks to you I am adopting that approach again and tracking how much I save to reach another goal. Thanks for reminding me!!!!
After reading this, I went and checked out the Mocha Club... seems like a great organization. It really shows that we can use our money in better ways, not only to be more fiscally fit but we can also help those in need. Great suggestions!
Oh my! I can relate to the compulsive shopping you've discussed here. I go into the grocery store for one thing and come out with three! Bringing your own lunch is a great habit. I think it can also save you on mindless calories b/c a packed lunch is often times healthier than a store-bought one.
What's sad is that this kind of thing is a new revelation to a lot of people. Basic fiscal concepts should be taught to everyone in schools. Compound interest, saving money and avoiding credit card debt are the key to a long-lasting life of fiscal security - no matter what your income.
IT IS JUST MONEY.
Worry about your health, not your wallet.
To you who spends $4 a bottle on Odwalla- that's better spent than a visit to the doctors office when you are sick from malnutrition or an inefficient immune system.
Buying food or beverages are not unnecessary spending. If you are enjoying what you are spending your money on then just spend it- it's only money. Consider owning only 2 pairs of jeans, or t-shirts in stead of a closet full, or just not needing another bag or the latest fashion. STOP going to the MALL.
WE ARE A CONSUMER MINDED CULTURE BUT WE ALL WANT TO BE RICH.
CHANGE YOUR PERSPECTIVE.
LIVE A RICH LIFE AND STOP WORRYING ABOUT MONEY.
HAPPINESS IS RICH.
Stephanie,
What I enjoyed about your post is the relevance to what readers may want to see. In today's economy it is refreshing to see young, talented writers encouraging their readers to be frugal. Which is more realistic than asking them not to spend.
You may find you enjoy making lunch occasionally. Like most, I often find it tiresome to cook for myself, but easy to cook for others. So when it is only me I'm cooking for, I try to invent a twist on something I have already prepared. Sometimes I am even excited to try it come lunchtime.
Thanks for the post. I enjoyed reading it.
Every time you desire something like the items meantion place the money in a jar and then imagine how great that coffee tastes especially after you had bought the franchise from the money that you saved.
Hi Steph,
I have been packing my lunch daily for the past 15 months because it keeps me on my food plan no matter what! I am sure I have saved a ton of money as well as have dropped close to 90 lbs! I even like to pack it when I am going to be home because then I am not trying to figure out what I will be eating while I am hungry. It is also super convenient as frequently if I decide to run some errands I take my packed lunch with me and usually end up eating it as my errands extend through lunch. It is also handy to take to the beach or parks to just sit and enjoy nature with a super nutritious lunch. So the packed lunch saves money, insures convenience as well as great nutrition. And by the way, starbucks also sells house coffee's for under $2.00! Great article. Penny pinchers die millionairs!
Great blog! Here's to becoming physically and fiscally fit! As a mother of daughters and advice columnist for teen and preteen girls, I'm so glad you're getting these messages out there. If girls can get into the habit of buying and drinking water, they are doing their wallets and bodies such a huge favor. Those dollars and calories do add up, so now is a great time to turn around bad habits.
Thanks for the fun, entertaining, and sensible words!
Carol Weston Girls' Life's "Dear Carol" carolweston.com
Lol I guess i'm on the right track for now, aside from the everyday parties, i bring my own lunch eat at home everytime i can, so most of my money goes towards booze lol i guess i can cut back on that too to save some more money :P
Bringing my lunch to work every day has been the best money saver this summer! Especially when you can get a foot long sandwich at the grocery store for about four dollars. That sandwich with a few other store bought items that last at least a week have greatly cut down on my food spending. Also, there is nothing wrong with water for lunch...it does the body good. Great blog!
I have thought about the same thing, Stephanie. I often go to my coffee shop to get coffee and a bagel, charge it on my credit card and with a $1 tip, it costs me about $8. I don't pay attention because I used my credit card and, if I do think about it, I rationalize the expense as an indulgence I deserve. But like you said if I do that 3x/week, it adds up to almost $100 per month or $1200 per year down the drain. Instead, I could drink green tea, much healthier, and buy bagels and cream cheese at the grocery store for a LOT less, so I'm going to work on that. I also want to tell you that, since your last blog, I have made a concerted effort to eat out less and I'm sure I will feel better not only financially but also physically because the food will be a lot healthier. Thanks for keeping me motivated!
I think it depends on how a person was raised. We always lived below our means as a family and I do so today. I drive a 17 year old car, live in a one bedroom condo and don't have to worry about social security going broke. I did have a grande iced coffee two days ago but that was because they had a special with your sbux registered card. I hadn't bought Starbucks for at least a month before that. Oh, and every two weeks I have $100 taken out of my checking and put into a savings account. I don't miss it at all.
I have that same problem with my addiction to Odwalla--at about four dollars a bottle. Maybe it's better in the long run to cut these out of our diets, for our waists, our blood pressure, and our wallets. Thanks for the tips!
Stephanie, you identified several points that are important for all of us, but especially those just learning money management skills. Saving Pennies turns into saving dollars which can then translate into downpayments on houses, or a new car etc. as you mentioned. Just being aware of where each dollar goes gives us the power to make decisions about our money. The final issue is that much of the current financial mess seems to relate to greed. Giving up a few trips to the coffee shop to help people in your own community or across the globe tends to teach concern for others, and makes us less selfish and greedy. Keep up the good work....Stu
I've cut back on my Starbucks too, once I realized how insane it was to spend so much money on something I could make at home for a fraction of the cost. But I have such a problem eating out that it doesn't seem to make a difference. Even happy hour sushi doesn't save me money!