Many frugal minded, simple living people talk about how it’s the small things in life that matter the most. I completely agree that we should take time to cherish moments spent with friends, enjoy that little chocolate truffle that your child gave you, or the dollar that you found in the laundry. I also have realized lately that I’ve made a huge mistake when it comes to our finances. I really haven’t been following one of the biggest frugal tips there is: the Latte Factor.
Basically the latte factor is this: if you’re spending $3 a day on a latte, that adds up to $1095 a year that you could save. Ultimately; don’t discount all the small things that you do that cost you money each day.
My problem is not with lattes; it’s with the Little Things. I’ve noticed that lately I’ve been lazy and not packing a lunch every day. I will spend around $5 a day for lunch. And every day that I go out, I kick myself for not packing a lunch! I feel that I just don’t have options that I’d like to take for lunch. Lazy!
Then I realize that I “need” a Gatorade or a pack of gum or some Tylenol so I stop by Walgreens and pick that up. Not only is it stupid to spend that money on the crap in the first place, but now I’m paying more than if I had budgeted it into my groceries! How frustrating.
I really need to sit down with good personal finance software and get a budget figured out. I need some professional help!
The other day I was trying to figure out how I could cut back on our monthly expenses. When I thought about cutting our cable and living without a cell phone, I started to realize that both of our cell phones cost around $70 a month, which is not too bad. If I stop purchasing my Little Things, think of how much money I’ll save each month! That’s when I realized that it’s pretty dumb of me to blog about personal finance yet spend money on stupid crap like eating lunch out every day. I’m going to tighten down after the beginning of the year, stop being lazy, and really work at cutting back on the Little Things.
Am I the only one that’s bad about spending money because it’s small amounts?
image from Live Solutions