Small Expenses: How to Save $1,456 Yearly?

It’s so common these days to hear people say, “Oh it’s only a couple of bucks, how can that possibly make a difference”. I’ve been guilty of it too many times to count over my life and I’m sure it’s familiar in most of your minds too! It’s a common mistake that the majority of people across the globe make each and every day. A couple of bucks here for a coffee, a few here for a newspaper, a snack from the corner store or a quick uber because you can’t be bothered walking. At the time these ‘few dollars’ seem irrelevant to your budgeting as they are usually viewed as tiny expenses that don’t have any effect on your bank balance. But when was the last time you actually compiled these costs and checked?

Let’s say you buy a takeaway coffee every morning to ensure you are ready for the day. I’m not sure what the cost is where you live but for me it’ll set me back about $4 a pop. Doesn’t seem much right? But when I work out that I have 7 coffees a week, at $4 a pop, that’s $28! $28 just to get me out of bed each day. Oh, and then there are 52 weeks… that’s $1,456 per year! A barista coffee a day or an all-expenses paid week away? I know which one I’d take!

It’s a hard thing to change, a nice coffee each morning seems like a morning ritual but if you really think about it, it’s just a luxury that you’ve decided to treat yourself with every day. If you can legitimately afford it then go for it, it’s your money… but if $1,456 would make a difference in your life today then maybe it’s something you need to re-evaluate! I know when I first changed my coffee ritual instant coffee seemed like a total rip-off at about $10 a bottle… but then I realised there’s 100 coffees in there! That’s $10 for a 3 month supply, not too bad if you ask me!

If you’re struggling with your finances or sick of living pay check to pay check I find the best way to start is by looking at your expenses as necessities and luxuries. Break them down… which do I need to live, and which can I live without. Remove any expenses that you can live without… find alternatives like instant coffee, bring your lunch to work, walk home, borrow a bike! You’ll be surprised at how quickly the bank balance starts to look quite healthy!

In the end budgeting all comes down to your mindset… how bad do you want to change? If you have the right mindset you’ll find this process easier to achieve, if you don’t then it will be harder but just remember it only takes 66 days to create a habit. Make a habit of smart spending and you might find your financial life takes a sharp turn for the better.

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