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October 13, 2007


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Seems like awfully high estimates for alcohol and manicures.

The biggest shock comes when you figure out the potential earnings you would accumulate if you eliminated just a few of these expenses. Let's take coffee, cigarettes and weekly lunches, which total $4,370 (you could max out your IRA with that!) If annual deposits were made into a 401k earning 8%, over 10 years you're losing out on $20,500!!

What about magazine subscriptions? Lottery Tickets? Charity drives at work? Kids school money grabs (Like selling books at 2x the price of a book)? Paying for your kids to play sports?

Actually, the only vice I'm guilty of (even my own list) on the whole list so far is lunches out. The place where I work has a coffee shop right outside (it's in a mall, where I work is attached) that I eat at once a week or so. If I forget to make my tea at home I also buy a tea there in the morning. This probably adds up to about 400-500 a year.

So how's a guy like me supposed to cut back? Maybe I could sell a kidney, or a kid. ;)

I'm sure I could find a ton of places. I just have to look hard enough. My GF just went back to school and decided that instead of getting a job with her training she would start her own business. That leaves us pretty tight. Especially since it's costing her rent for her building and the care for our kids when she is away. I hope over the next year it booms or or we're going to be in an awful lot of trouble.

For me, it's weekday lunches. That's a big expense for my wife and I, but it's something I personally enjoy very much and don't plan to give up. Our spending on all the other categories is practically $0 (alcohol is maybe a couple of hundred dollars, and vending machines maybe a few dozen).

Who buys a bottle of water every day? who buys 2 drinks out every day? Who details their car, not just washes it, every 2 months?

The list is alright, but the numbers are way off for me. I enjoy my coffee, but usually get it for free, and when I have it at home probably averages less than a buck a weekend. I enjoy an occasional glass of wine, but now we just buy a box (for about $10) and it lasts months. The big area I could hit is the afternoon vending machine trip I have every couple of weeks. Those afternoon munchies add up, but only to about $26 bucks a year, not $260. Good suggestions on things to cut out, or cut down on though.

When I read posts that basically say, "Yeah, what you write makes sense, but....", I'm reminded of Henny Penny. All the other animals had no time to help her bake her bread, but were there to try to help her eat it. These folks will spend and make excuses now, and will expect help later.

I am pissed off about all these people that got mortgages they could never afford and keep crying that they never knew what was going to happen. They just kept signing where ever the nice man told them to. Now they want a handout. Meanwhile, I am putting 50% on my house, going with a fixed mortgage.

Lucky us! We only do number 7 and 9. But I do think the numbers are off, our total cost for eating lunch out is $1200, and the interest on cards is much lower than their amount because most of our cards are below 5% (most at 0%).

Still, it's always good to look at where you are spending and add it up as a yearly cost. We found that our cell phones were costing us over $2000 a year, so we switched to pre-paid and now we only pay $200 a year total. That's a big savings!

Putting the $15409 saved into a High Interest Savings account would get you a new car or overseas holiday before too long, but I don't think that I would be disciplined enough to do it.

I love my coffee way too much

hahaha.. yes that is right. but will I do that? :-D

keep posting

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