Counting Pennies

Before you can start planning your path to riches, you need to identify what your money wasters are. You know what I’m talking about: those things you do that waste your money away without any real long-lasting benefits. Here’s a list of the most common ones to get you started:

1. BAD HABITS: This is an easy one. Smoking, drinking, gambling. Even things that seem more innocuous, like shopping when you’re feeling down or getting caught in eBay bidding wars over a collectible Barbie. SOLUTION: Give it up or at least cut down on it considerably. Or find something else you can do (for free) when you need a quick pick-me-up. I have a friend who took up knitting when she was trying to quit smoking and needed something to occupy her mind. She now gives knitted items as Christmas gifts and we all love her for it. She keeps busy with something that doesn’t cost much and then saves even more when the holidays roll around.

2. LAZINESS: Do you find yourself shopping at the expensive corner store because the supermarket is too far away and you don’t feel like making the trip there? Or maybe you keep paying late fees at Blockbuster over and over because you don’t return your rentals in time? SOLUTION: Plan your time better so you only need to do the trip to the supermarket once a week, or use the walk as your daily workout. If you can’t get yourself to Blockbuster in time, sign up for Netflix so there are no more late fees. Ever.

3. SERVICES YOU DON’T NEED: Do you really have time to watch over 100 channels or could you do with basic cable? Are you using that gym membership you signed up for or was January 2^nd the first and only day you were there? What about extra phone services like call waiting, conference calls or long distance? SOLUTION: Go over your expenses and look for things you can cut out. You’ll be surprised at how many you’re paying for just out of habit. Unless you have a huge debt to pay off or are really experiencing financial trouble, nobody is saying you should give up everything you love. Just stop paying for what you don’t use.

4. FOOD: Surprised? Don’t be. If you’re like most people, groceries take a big chunk out of your budget. Adjust your spending in this area, not matter how inconvenient it may be, and you will quickly see a difference. SOLUTION: How you approach this depends a lot on your eating habits: do you eat in restaurants a lot (then look for cheaper places or start brown-bagging your lunch to work), order in all the time (stop by the supermarket more often so you don’t run out of food) or buy only brand names (try the generic brand to see if you like it; sometimes the difference is barely noticeable)? I don’t cook and I don’t want to learn, but I’m a vegetarian, so that saves a lot of money (try having 2-3 meatless meals a week to see how much you save). I also shop smartly and buy in bulk whenever I can.

What are YOUR money wasters and what are you doing to turn things around?

Before you can start planning your path to riches, you need to identify what your money wasters are. You know what I’m talking about: those things you do that waste your money away without any real long-lasting benefits. Here’s a list of the most common ones to get you started:

1. BAD HABITS: This is an easy one. Smoking, drinking, gambling. Even things that seem more innocuous, like shopping when you’re feeling down or getting caught in eBay bidding wars over a collectible Barbie. SOLUTION: Give it up or at least cut down on it considerably. Or find something else you can do (for free) when you need a quick pick-me-up. I have a friend who took up knitting when she was trying to quit smoking and needed something to occupy her mind. She now gives knitted items as Christmas gifts and we all love her for it. She keeps busy with something that doesn’t cost much and then saves even more when the holidays roll around.

2. LAZINESS: Do you find yourself shopping at the expensive corner store because the supermarket is too far away and you don’t feel like making the trip there? Or maybe you keep paying late fees at Blockbuster over and over because you don’t return your rentals in time? SOLUTION: Plan your time better so you only need to do the trip to the supermarket once a week, or use the walk as your daily workout. If you can’t get yourself to Blockbuster in time, sign up for Netflix so there are no more late fees. Ever.

3. SERVICES YOU DON’T NEED: Do you really have time to watch over 100 channels or could you do with basic cable? Are you using that gym membership you signed up for or was January 2^nd the first and only day you were there? What about extra phone services like call waiting, conference calls or long distance? SOLUTION: Go over your expenses and look for things you can cut out. You’ll be surprised at how many you’re paying for just out of habit. Unless you have a huge debt to pay off or are really experiencing financial trouble, nobody is saying you should give up everything you love. Just stop paying for what you don’t use.

4. FOOD: Surprised? Don’t be. If you’re like most people, groceries take a big chunk out of your budget. Adjust your spending in this area, not matter how inconvenient it may be, and you will quickly see a difference. SOLUTION: How you approach this depends a lot on your eating habits: do you eat in restaurants a lot (then look for cheaper places or start brown-bagging your lunch to work), order in all the time (stop by the supermarket more often so you don’t run out of food) or buy only brand names (try the generic brand to see if you like it; sometimes the difference is barely noticeable)? I don’t cook and I don’t want to learn, but I’m a vegetarian, so that saves a lot of money (try having 2-3 meatless meals a week to see how much you save). I also shop smartly and buy in bulk whenever I can.

What are YOUR money wasters and what are you doing to turn things around?

Welcome to Counting Pennies!

This is a blog about living on less, saving money and embracing simplicity. It’s also an open record of my quest to save at least $5000 in less than a year. I’m here to argue it’s not only possible, but also easier than most people think.

You’re invited to join me, of course. Whether you’re trying to pay off a debt, build up an emergency fund or simply looking to stretch your dollars a little more, I hope you can find something here to help you in the journey.