Perfection does not exist when it comes to personal finance, if it did then there would be no demand for personal finance blogs. We all make mistakes when it comes to spending our money, and life goes on. However, I feel there are 5 areas of spending money that we should all focus on improving.
1. Night life/Entertainment. What’s the point of working all week if you can not go out on a Friday night? I will never recommend any one to spend their weekends confined to their living room. I just strongly urge people to seek cheaper alternatives when it comes to night life, whether it be thinking of something creative or trying something new. There is nothing wrong with throwing a backyard bbq in the summer as opposed to going to a night club and blowing a ton of money. If you insist on going to night clubs every weekend, then you should try to be creative by searching for establishments with cheaper drinks or no cover. Unless you have the money to back it up, there is no point to go to expensive night clubs just to be seen.
2. Cars. There are so many different ways to save when it comes to automobiles that I could not possibly list all of them. Before buying a new car you should at least consider buying a slightly older car, because the value of your new car will diminish as soon as you drive off the lot. Another option to consider prior to purchasing a car is to seek all the fuel efficient vehicles available. The list could go on forever and I am not a car expert, but you get the point.
3. Food. Should you eat McDonald’s all day in order to save money? Absolutely not. Saving money on food does not mean that you should consume lower quality food to save money, it is actually the exact opposite. Going to a grocery store at the beginning of each week with a clear grocery list of all the items you need to have a proper breakfast, lunch, and dinner will save you a lot of money. A carton of eggs is so cheap it is not even worth mentioning. Add in some cold cuts, bottled water, fruits, vegetables, and you are set. Not only will you save money but you will also eat healthier (and no Subway is not as healthy as you think).
4. Clothing. Yet again I mention everyone’s favourite purchase, clothes. I will state this again, you do not have to dress like a scrub, just do not buy every new brand or style that comes out on a weekly basis. The simplest way to save on clothing is to shop less often (usually at the beginning or end of a season) or to just purchase less clothing. If you are inside the local Banana Republic store about to buy 4 shirts, stop for a second and only purchase two of them. Better yet, try not to purchase certain expensive brands of clothing unless they are a job requirement or your income is high enough to dress really well.
5. Non-necessities of life. This category is so vague that I do not even know where to begin. Pretty much try not to purchase anything that you do not feel will add direct value or pleasure to your life. Do not randomly subscribe to magazines, do not buy 5 different coffee mugs, do not buy the newest technology every month, etc. The list of non essential purchases is so general that it pretty much comes down to your own discretion.
{ 9 comments… read them below or add one }
I came across your blog recently and have become a fan
These are good tips, other than the bottled water suggestion for saving on food. I say this as someone who only drank bottled water for the past few years. Now I just have a Brita pitcher and pour water into a cup. It’s taken some getting used to, but I am saving money this way.
I found that water even tastes better if it’s simply refrigerated instead of coming straight out of the tap.
There’s no need to wear the newest trends to work especially-they may actually be inappropriate and make you look unprofessional.
Instead of buying a car at all, check out mass transit options. I know atlanta’s transit system has a website where you put in your beginning and ending address and it’ll tell you how to travel there, taking trains, switching buses, if you have to walk for a mile, etc.
You’re totally right about refrigerated water. My roommate and I just recently started putting tap water into pitchers. The water actually tasted better than bottled water. Drinking tap water could save you hundreds of dollars a year.
Well I wasn’t expecting this to turn into a water bottle debate, that was just an example. Any method you choose to consume water is definitely cheaper than buying it from a vending machine. I hope to hear other methods on when it is needed to save money because I can tell the readers of this blog are very intelligent with a lot of unique knowledge to offer. I stand to learn just as much from my readers as my readers do from me.
I’m a Brita man myself. I was a sucker for the “forever in a landfill” campaign they had and bought one those Nalgene refillable containers. Take it every where I go and I’m sure it’s saved me plenty.
Also, I’m a big fan of buying bulk chicken and baking it on Sunday to give me lunch options the rest of the week: chicken wraps, salads, sandwiches, etc. (I like chicken)
Eating out is so easy to save 20% on your bill by 1. Order water. Do you really need the $2 soda? 2. Pass on Appetizer. Usually you’ll get bread, soup and salad. Why spend $8 on something that’s not the entree.
3. No Dessert. Save your $6 and go by some Ben and Jerry’s. For one person that’s about $16, for two (one appetizer) that’s $28 in real savings.
Hey man congrats on getting the idea for the site off the ground. I have been checking back everyday and I like what I see so far. As for the grocery shopping debate, everyday before school I make sure I stop at the grocery store to buy my food for the day. It beats stopping by “subway” 3 times a day.
I love cars. I am saving up for a BMW 5 or 7 series I would like to buy in 4-5 years. This is a big motivating factor for me to save money.
I agree in the sense that we all have our own savings goals and view point on when it comes to spending money. As mentioned before the thing that motivates me to save money is vacations. I feel that by not going out as often in the city I can save that money and put it towards a nice vacation. To each their own.
Twenty somethings to my mind shouldn’t waste money on clothes. Save it for when you’re old and need some bling to make an impression!