Often, I like to talk about the fact that little changes in your life can really add up if you’re faithful about sticking with them, whereas drastic changes made will burn bright and then out quickly. Take as an example what has been termed “The Latte Factor.” A cheap latte (with no frills, extras, and in the smallest size) averages around $3. If you got say 3 Lattes per week, you will spend ~$9/week (less than $10, not so bad right?). For the year, that pans out to be $468. $936 for 2 years, $2340 for 5 years, and $4680 for 10 years. All. on. fancy. pants. coffee.
If you put that same $ in a savings account with 7.5% interest rate after a year it would be $503.10, 2 years = $1006.20, 5 years = $2515.50, 10 years = $5031.00, 20 years = $10,062. So it does look like less than $10/week can make a difference right? What would you like to do with $10K in 20 years? Help pay for your kid go to college/grad school? Take an awesome vacation? Invest it to make more money? Buy a killer wardrobe? Have a fantastic 55th Birthday Party? Or you could spend less than $10/week (on lattes, movies, whatever) and have nothing.
Now, the Queen enjoys a good Starbucks beverage as the next gal (Grande Fat Free Sugar Free Carmel Macchiato, hot or cold, no whip or carmel drizzle, please?) AND I’m NOT trying to be a killjoy. I’m just saying that you choose each day where your money will go. Will it be used to pay a bill? To buy something you truly need? To pay for a child’s education? To pay off debt? Saved for a rainy day? Put back in case of an emergency? Used to make more money? The choice is up to you. The beginning of financial ruin is when we think we “deserve” something – when blessings turn into entitlement. When you view money as a gift to be managed, a treasure to be taken care of and used, instead of a genie used to grant wishes, then you find yourself in a state of financial peace. Stress begins to subside and you can see true hope.
Tonight, I’m chatting with a group of ladies who want to learn about what they can (and shouldn’t) do to be a bit more frugal. What small changes (like making coffee at home) that have made a big difference in your life would you share? Thanks for your help!
www.queenoffree.net
I no longer shop at Wal-Mart!!! :)Maybe I shouldn’t say never. I’ll say that I have been there 1 time in the past 4 months.
My biggest change that I’ve made is changing the number of time I go to the grocery. With this change is also the meal planning and grocery list. I no longer go to the grocery without a list. I plan my list using the sales ads for 1 store, maybe 2 depending on what they have on sale. I only go to the grocery store on 1 day a week.
Another thing I/we do is set our budget for dining out. We now fix similar, but healthier meals at home. We usually dine out 2 times a month which saves a lot of money.
small change that has made a difference in our like? Getting all books/music/movies at the library instead of renting/buying them. Saves big $$ for us!
I’m with you Lady Amber. I usually limit myself to 1 Aldi trip and 1 other grocery store trip/week. If I’m not there, I can’t buy. I’m the same way with the mall. I just simply don’t go in very often or I buzz through!
I *heart* the library Lady Emily (speaking of I have a book that needs to go back today). Not only do you save $, you cut down on clutter on all of the things that you might buy otherwise. 🙂
Great tips ladies! Thanks for thinking through this with me. I got some other great ones on the Facebook fanpage yesterday, too and had a GREAT chat last night.