Tip 24: Cut small unnecessary purchases

Cutting small expenses can provide a big opportunity for savings. It is amazing how fast small purchases can add up- buying coffee, lunch, a new toy for the kids, a music download, etc.
Start by figuring out how much you can save to provide motivation to change your ways. Keep receipts or keep a notebook and record all of your expenses for a week to get a baseline. Then work to see what you can eliminate.

The key word to keep in mind is unnecessary. As I have mentioned, the line between “needs” and “wants” is fuzzy, but some things fall clearly on the “wants” side of the line and can be eliminated without causing any significant consequences. You may be in the habit of bringing home a toy for your kids when you go shopping- they would be just as happy if you write them a note of play with them. I am sure a lot of kids would be just as happy eating a sandwich from home with you in the park instead of getting a Happy Meal at McDonalds and bringing home yet another toy that will never be played with.

Many unnecessary purchases are a product of habits- maybe you always get a cup of coffee or a donut when you get gas. Maybe you like to get a new toy for your pet when you pick up pet food. Maybe you like to buy a new book or magazine at the bookstore just for fun. Purchases like this can be enjoyable- which has value, buy you may value the money you could save over time by avoiding these purchases even more.

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