Many people find it hard to save money, but it is actually really simple. Here are some things I stopped buying which allowed me to save a large portion of my hard-earned income.
1. Starbucks
I enjoy going for an occasional cup of coffee at Starbucks with friends, but I don’t need to buy it every day. I see some people at the office buying Starbucks even though there is free coffee at the office.
Buying a $3 cup of coffee a day 5 times a week means $15 a week, $60 a month, and $720 per year. I know people that buy 2 cups of coffee a day, 5 times a week. That is $30 a week, $120 per month, and $1,440 per year! You could buy a nice computer or a used car for that money!
2. Brand name products
Brand name companies like Louis Vuitton and Burberry often have the luxury to charge customers higher prices than other brands. Often, people see these brand name products as a status symbol.
Obviously, if a name brand product is of higher quality and made to last longer, the higher price may be justified. However, buying a brand name product just for the brand name will cost you a lot of unnecessary money every year.
Brand names will always come out with new products every year, and if you just want to chase brand name products, it’s a never ending cycle that burns holes in your wallet.
I know people who bought a brand name car like a BMW or Mercedes Benz only to regret paying the monthly lease for years to come which eats into their monthly budgets.
3. Going to the movies
I used to go a lot more to the movies, but these days I find that it’s a lot cheaper to watch YouTube (which is free!) or Netflix. I still enjoy a movie night once in a while with friends, but cutting back on the movies budget has saved me a lot of money.
Let’s say a movie ticket costs $15. One movie per week will cost you $780 per year! You can simply invite your friends over to your house and watch a movie on your big screen TV. It will probably cost the same as one movie ticket to rent a movie at home, but you can have 10 or more people watch at home for the price of one movie ticket!
4. Sales, coupons and discounts
We all love a good bargain. When we see something go on sale, or we get a 10% off coupon, we are tempted to buy something that we don’t need.
Recently, I received an email from a company I buy from that offered $200 off for a purchase of over $1,000. It immediately made my human nature want to check their website for things that I may “need”, just so I can spend $1,000 in order to save $200.
Then I reminded myself that I will still need to pay $800 out of pocket! It was hard to let the $200-off offer expire, but it was definitely better than buying stuff I don’t need.
Calvin K. Lee Author 