How to Save Money by Getting Rid of These Expensive Habits
We all have habits. Some habits are good - like the habit of brushing your teeth before bed and after you wake up, and some habits are bad - like the habit of cracking your knuckles (guilty) or biting your nails (only when I have a hangnail!). Some habits are just expensive.
If you have been trying to find a way to save some money, then you're in the right place. I will give you some of my own secret (maybe not so secret) tips on how to save money by getting rid of some expensive habits.
At Home
Cook
After a long, stressful day at work, it can be so tempting to just order a pizza (or three) instead of cooking. Don't worry, I'm not telling you to never order pizza again. On the contrary, I just finished eating pizza. The important thing is balance. Sometimes I don't always succeed with balance, but the goal is to limit yourself. If you are like me and aren't a very good cook, then I hope you are as lucky as I am and find a partner who cooks as good as my boyfriend. If you aren't very good at cooking and don't find a partner like mine, that's okay, that's why microwaves and ovens were invented: for taquitos and frozen pizzas, respectively.
Being a cook that could win it big on Cutthroat Kitchen or Hell's Kitchen isn't the point. The point is that eating out and ordering takeout is an expensive habit. This is such an expensive habit that if you get rid of it, you will end up saving a lot of money. Don't worry about cutting it out all at once. Try to just eat out one time less this week. Try this for a week or two and then cut out another meal out. Over time it becomes easier, and before you realize it, you'll be choosing to cook at home out of habit.
Name brands
Everyone has preferred brands in certain products, but buying solely name brand items instead of sometimes substituting generic brands is one of those expensive habits that is easier to get rid of. It's not always easy, especially if the generic brand is really different from the name brand, but usually there is not much difference in the name brand and the generic brand. Don't get me wrong. You don't have to drop all name brands. Just try substituting a few of your name brand items for generic items. You'll save a lot of money over time, and who knows, maybe you'll even end up preferring the generic brand!
Utilities
You may be surprised to find out how being environmentally friendly can save you money. Or maybe you will be more surprised at how your utility use may be one of your expensive habits and that something simple like changing how you handle utilities could save you a lot of money. Here are just a few expensive habits you may have regarding your different utilities:
Lights
This is a simple one. If no one is in the room, then don't leave the lights on. Not only does this drain energy, which is bad for the environment, but it also leads to higher electric bills for you, which means you pay more for something you aren't even getting any benefit from. Try to be more conscious about turning off the lights when you leave the room.
Water
When brushing your teeth, you don't need to leave the water running the entire time. Try to only have the faucet when you are wetting your brush before brushing your teeth and after you're done brushing your teeth, when you need to clean the brush off again. Similar to the lights example above, you are just wasting a resource, in this case water, and paying for something that you are not getting use out of. Depending on where you live, you may even have water consumption limits enforced by the government.
Water heater
Some people prefer scalding hot showers, and some people prefer ice cold showers. If you prefer really hot showers, then this may be one of your expensive habits. While most water heaters are set at 140 degrees, turning your water heater down to 120 degrees - a mere 20 degrees - will actually save you a lot on energy bills, as well as be better for the environment.
Light bulbs
Even using different types of light bulbs can help both the environment and your bank account. If you replace your current light bulbs with LED bulbs, then you will save a lot of energy, which means you will save a lot of money. Plus, LED bulbs tend to last much longer than regular bulbs, which means you will also cut back in light bulb expenses, not having to replace them as often.
Shower head
You may be thinking, "First you tell me that I need to possibly lower the heat of my water heater, and now you're telling me I have to change my shower head. Leave my showers alone!" I understand the importance of a nice, warm or hot shower or bath at the end of a long day, and I am not trying to take that away from you! But if you change to a shower head that allows for more control over the flow of water, then your shower head can prevent waste of water, without you having to make any extra effort.
Solar
If you really want to save a lot of energy and a lot of money on your electricity bills, then you should consider having solar panels installed on your roof. There will be a high initial cost before savings kick in, but if you can afford it, you will save much more in the end. If you cannot afford the official cost, then you could get a solar panel loan to help with the upfront costs.
Out And About
Coffee
I love coffee, and I completely understand wanting to stop by Starbucks, Dunkin Donuts, or your local coffee shop for a cup of coffee. The problem is if this is a part of your daily routine. I used to go to Starbucks every morning on my way to work. Just standing in line woke me up and made me feel ready for the day. But the few bucks every day really adds up, fast. Let's say you just spend $3 on a cup of coffee in the morning. If you do that every day before work, that's $15 a week, $60 a month, or $720 a year!
Long story short (ish), if you brew your coffee at home instead of buying it at a coffee shop every morning before work, you can save big.
Ordering "the Usual"
Ordering whatever you want on the menu is one of the most common expensive habits. When you're out and about, it is easy to just order what you are craving, but you will save some money if you are willing to take advantage of lunch deals, combo deals, or other types of specials instead. This doesn't mean ordering food you don't like. Rather it means you should sometimes choose to order something you like but isn't what you necessarily wanted, in order to save some money. Eating out really adds up over time anyway, so choosing to take advantage of deals and specials can end up saving you a lot of money over time.
Leftovers
Not everyone likes eating leftovers, but one of the most wasteful expensive habits is not taking your leftover food home with you after eating out. It seems like restaurants just keep giving bigger and bigger portions each year. While it is nice to have a better bang for your buck, it isn't a good idea to always finish your plate, if the portion size looks like it's actually for 2+ people. But just throwing away the food or leaving it at the restaurant for the waiter to throw away is wasteful, both in terms of food and in terms of money.
My tip for leftover fries, which usually aren't very good: Make loaded fries! If you put enough cheese and meat on the fries, you won't notice as much if they got a bit soggy over time.
In General
Budget
Reasons To Save Money
There are so many reasons to save money. Here are just a few, some of which I guarantee will apply to you:
- To travel (my personal favorite)
- To buy or build a house
- To move houses
- To afford rent
- To afford your dream wedding
- To build your business
No matter what your financial problems are, budgeting can probably help. In this case, if you have expensive habits that you need to get rid of, creating a budget should be your first point of action. Creating a budget can allow you to pinpoint your problem areas and prioritize your spending. Like they say, the first step is admitting you have a problem. A budget will allow you to see exactly what your expensive habits are, and from there you can make a plan to reduce spending in those specific areas.
Three day rule
Never buy a big ticket item the same day you see it. Even just sleeping on it isn't quite enough. If you see a big ticket item, like a new car, an expensive purse, or a house, then follow the three day rule: don't make the large purchase until at least three days later. This will help you quit the expensive habit of impulse buying. Self-control is sometimes the hardest thing about getting rid of expensive habits, but setting a rule for yourself, such as the three day rule, will allow you to set spending boundaries for yourself.
Alcohol and cigarettes
Not only are alcohol and cigarettes bad for your health, but they're also bad for your bank account. Depending on how much you currently smoke, you could save some to a lot of money.
Negotiate And Manage Your Bills. Quick And Easy.
Coupons!
I am a huge coupon person. To be honest, the only mail I really like to get is coupons. I don't like print-out coupons in general though, since they aren't very good for the environment. The great thing about this day and age is that you can find almost anything online, and there is an app for almost everything. I have the apps of my favorite coffee shops, grocery stores, pizza places, and restaurants. Most of them have coupons, though not all do. Coupons can save you a little each time you make purchases, which adds up over time.
The drawback of coupons is that sometimes coupons offer things you don't necessarily want, so you end up buying things you otherwise wouldn't have. Similar to my point about ordering "the usual" above, though, sometimes coupons and other deals will provide you with something similar to what you want, offering you a good substitute for a cheaper price.
Pay bills online
Paying your bills online usually results in a cheaper bill, since companies like to encourage online bill payment by offering .05% or so off for "going paperless". This isn't much of a decrease, but like most other deals, it adds up over time. Plus, if you set up autopay, you are less likely to forget and miss a payment, which would have resulted in additional fees.
Apps
Like I mentioned above, there is an app for almost everything nowadays. Various tools can help you save money. One such example is the EveryDollar budgeting app, created by Dave Ramsey. You can use it as a bill and expense tracker, which can help you hold yourself accountable. Holding yourself accountable is one of the most important steps in getting rid of expensive habits, since it's easy to say you will follow your budget and cut out expensive habits, but it is harder to actually do. Accountability will keep you on track.
How Much Money To Save Monthly
Honestly this is completely up to you. If you asked Senator Elizabeth Warren, creator of the 50/20/30 Rule, then she would say that you save 20% of your income every month. Maybe this is a good idea for you, or maybe it is a bit drastic. It really depends on your personal financial goals. To determine how much money you should save monthly, there are a few things to keep in mind, including:
- Your Goals
The first thing you need to do is determine what your goals are. Only then can you start preparing to save for them. You may even have multiple goals, which is completely fine. The important thing is to decide what is important to you, and I mean everything that is important to you: short-, medium- and long-term.
- How Much Your Goals Cost
Now that you know what you want, you need to determine how much this costs. This will be how much you need to save overall.
- Deadline for Your Goals
When do you want to reach these goals? This is the final piece of information you need before calculating your monthly savings amount. Once you choose a date - which can always change if you decide so, you need to calculate the number of months until this date.
- Calculating Time!
- add up how much all of your goals cost
- then, divide that total by the number of months you need to reach your goal
Now that you know what you want, how much it costs, and when you want it by, all that's left to do is a little math! Don't worry, it's not much math. You just need to:
Doing this will give you a monthly amount to save.
Conclusion
Expensive habits can be hard to get rid of. It is really up to you if an expensive habit you have is so expensive that you really need to get rid of it. Some expensive habits are a bit inconvenient but not really worth changing your life over.
The first thing you should do is decide if there are certain reasons for you to save money. Whether it is to go on a vacation, have a dream wedding, or save for retirement, there are many reasons to start saving. Once you decide you want to start saving, you need to determine how much you need to save to reach your goals. Then, all you have to do is save!
Sure, that's easier to say than do. But that's why I wrote this piece. I have hopefully brought you some awareness of some expensive habits that you have, as well as ways to get rid of those habits. If you have expensive habits, you can save money by getting rid of them.