Counting Pennies

Somehow, we have been led to believe that we should worry only about the big expenses: the new car, the annual summer vacation, the expensive brand-name purse… The truth is that most people are pretty careful when it comes to spending money on big-ticket items, while almost nobody thinks twice about paying $5 for a Coke at a restaurant or $10 for movie tickets. While you may think those numbers are too low to mean anything, take a look at what happens when you multiply them by 365 days. 

• $4 Starbucks coffee (5x/week): $960
• $20 hardback book (1x/month): $240
• $25 movie theater outing (ticket + popcorn + soda; 1x/week): $1300
• $3 late fee to Blockbuster (1x/week): $156
• $5 call waiting service on your phone (1x/month): $60
• $40 unused gym membership (1x/month): $480
• $1 snack at the vending machine (5x/week): $260

The ones above are expenses most of us have on an average month but don’t think twice about. Would you take notice if I told you they amount to $3456 a year? Shocking, isn’t it? That’s money you could have put aside into a savings account or used to pay off debt.

Next time you’re ready to spend a dollar, think about the yearly consequences of that one-second decision and only go ahead if you’re sure it’s worth it.

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