Recently I decided that I would like to see how much money I could cut from my budget and not in any way adversely impact my lifestyle. I set a goal of $1,000/year and today I achieved that total.


What did I do?

1. Reduced my cable package. I removed the HD Plus Tier (which is smithsonian, MGM, universal and two other small channels) from my line up and got rid of showtime. Total Saved: 23.05/Month

2. I talked to my car insurance provider and told them I found quotes for lower with more coverage. They immediately lowered my semi-annual bill by $158. Total Saved 26.33/Month.

3. I told my gym the same story. That I didn't see any reason to continue to use their gym when I primarily use it for swimming and could now join another gym that was closer and had a pool. The gym lowered my bill by $10.00/Month. Total Saved: $10/Month

4. I took a long hard look at my cell phone plan and decided to reduce my minutes down to 450 from 900 a month and 500 texts from 1000. Total Saved: $31.83/Month

Yearly Total: (31.83+10+26.33+23.05) * 12 = $1,094.52.

All I really did in any situation was enforce my value as a customer and identify areas that could be considered waste. I still have a few more items I am going to address and am certain I can get to a $1,250/Year reduction without negatively affecting my quality of life.

I would like to challenge anyone here to try the same and share your story and what you've saved. I think you'll be surprised what you can do when you start speaking with your wallet.

7/12/2010 2:29:26 PM

Awesome. But be careful. It is terribly easy for "saved" money to disappear as quickly as you were able to find it, without having any idea where it went.

Make sure this $100 a month goes somewhere that it won't escape from. It took me a while of frustrating experiences on this before I switched to an all-cash / envelopes system, with the bare minimum even available to me to spend. Savings are hidden in an account that's very hard to access, and sent there automatically from the check. Everything else is in cash, and if the cash is gone, too bad for me. Once that was done, it's crazy the benefits I've gotten from it.

To make sure the money is actually saved, and not just theoretically saved, move money to your savings/retirement/mattress at the very same time you save it. Ex - when you pay the recently-reduced bill, put the saved amount away at that same time.

Dollars are sneaky bastards. You think you have them trapped and contained responsibly, but they will find a way out of their play-pen without you knowing. Lock that shit down.

[Edited on July 12, 2010 at 2:39 PM. Reason : s]

7/12/2010 2:37:44 PM

So really you got a larger cable and phone package than you needed and it took some soft of epiphany for you to realize you could just pick and smaller package that fit your needs? Typically that would be considered common sense.

7/12/2010 2:38:56 PM

ooooooh SHIT

7/12/2010 2:41:03 PM

If you already have the bare minimum of the services listed, you can't really go any lower, and therefore wont be able to win the challenge.

[Edited on July 12, 2010 at 3:10 PM. Reason : -]

7/12/2010 2:45:06 PM

I could probably save three or four grand just by going out half as much.

Kinda sad...but that's pretty much the only thing I spend significant money on.

7/12/2010 3:20:28 PM

^This.

7/12/2010 3:22:03 PM

^^ Same here.

When I read the OP my initial thought process was something along the lines of:
"Oh man, what would I do with an extra $1000?!"
"Go get wasted!"

7/12/2010 3:25:34 PM

Quote :

"Everything else is in cash, and if the cash is gone, too bad for me."

that's something i've been thinking about doing.. it's way too easy for a ton of small things to add up over the month and i end up blowing a few hundred bucks on stuff i wouldn't have if i had been using cash.

still trying to figure out the best amount for me to get each week, though

7/12/2010 3:26:15 PM

My worst habit is that I take $100 out of the ATM every Monday as spending money for the week

Lots of times I get to Friday and still have $50 or $60 left and think "Hey, free money!" and blow it on something dumb like some new ties or or a six foot sub

I should just pocket it and carry it over to next week

7/12/2010 3:29:59 PM

I used to be a fast food junkie, but I've been doing pretty good this summer. Also been doing good on cutting back how much I'm spending on gas. By the time grad school starts back in the fall I think I'll have only had fast food once, and only filled the gas tank once over a 3 month period. But then, all bets may be off once school is back in session.

7/12/2010 3:30:29 PM

Within the last year my auto insurance dropped $500 thanks to the points on my license dropping. I also abandoned my personal cell phone plan and now use only my business cell phone, saving $40 per month.

I've also been doing a better job of paying down and reducing my CC debt so compared to a year ago I'm paying about $20-30 less per month in interest.

So that's about $1200 less in expenses than a year ago. I also go out a lot less than I did last year, though I'm not sure how to quantify that

[Edited on July 12, 2010 at 3:37 PM. Reason : ehhh]

7/12/2010 3:35:13 PM

One of the blogs I read did a similar challenge a couple years ago. There are a couple good tips listed but as mentioned earlier, a good deal of them are common sense.

http://www.iwillteachyoutoberich.com/blog/announcing-the-save-1000-in-30-days-challenge/

7/12/2010 3:40:01 PM

Quote :

"To make sure the money is actually saved, and not just theoretically saved, move money to your savings/retirement/mattress at the very same time you save it."

Thats is basically what I've done. I've increased an automatic draft by $100 a month to my savings account.

Quote :

"So really you got a larger cable and phone package than you needed and it took some soft of epiphany for you to realize you could just pick and smaller package that fit your needs? Typically that would be considered common sense."

Everyone has a larger cable and larger cell phone package than they need, if they have one. I suppose I could save more if I got rid of these things all together, but I did it in fashion that I won't ever notice, which is what made it a challenge.

Quote :

"I could probably save three or four grand just by going out half as much."

I could do the same, but again the challenge was doing so without altering my lifestyle.

Saving all that money without having anything regrettable to show for it is what makes it that rewarding. I could cancel cable all together and stop going out but then saving that money wouldn't be as awesome as it is now.

7/12/2010 3:40:29 PM

Moved into the forest
-425 rent
+ 50 gas
-50 internet
-75 util
= -500

* 4 months = -2,000
Profit!

7/12/2010 3:51:46 PM

Quote :

"It took me a while of frustrating experiences on this before I switched to an all-cash / envelopes system, with the bare minimum even available to me to spend."

I HEAR SOME DAVE RAMSEY!

If anyone is looking for a rock bottom deal on cellular service page plus is the way to go.
http://www.pagepluscellular.com -- The number to customer service is usually busy (as in you cant get through) but that does not matter because once your service is set up you will probably never call them again. You can use any old verizon, alltel, or us cellular phone (except blackberries) unlimited talk and text is $39.99 a month, 1200 minutes and 1200 text is 29.99 a month. The only potential drawback is if you need unlimited data (remember a lot of smart phones now have wifi) The data caps out at 50mb so that can go fast if you are using a droid or something.

7/12/2010 4:14:46 PM

what if you don't make $1k?

7/12/2010 4:16:56 PM

in before the "i went over on my cell bill this month and wiped out my entire savings" thread.

7/12/2010 7:14:52 PM

yes having too few minutes can backfire especially if you are not one to monitor your usage.

You also want to put your bill cycle date on your calendar so you can check usage prior and if necessary raise your plan and backdate it prior to the cycle date. Most companies allow you to do that.

7/12/2010 7:21:23 PM

In June, I kept track of what I spent/saved on my groceries


Shelf cost (before sales and coupons) was $1019.24. By buying on sale and using coupons, I only spent $208. Savings of almost 80%

7/12/2010 7:21:48 PM

^ You're a girl. Eating more than $100/mth in groceries is just disgusting.

I just found you way to save an extra $100/mth. Now spend $30-$40 of that on a gym...

7/12/2010 9:31:56 PM

AHA, rallydurham was abused by his mom.

7/12/2010 9:39:03 PM

I think paying for everything in cash is a great way of reining in your excess spending.

For the past four years I haven't used my credit card or debit card for anything. This wasn't out of choice, as where I live is a cash society still, but I do find I spend significantly less than when I'm not using my debit card for all of my expenses. It doesn't affect my lifestyle at all, I just spend my money more wisely and don't buy stupid junk I don't need in the first place. If anything, it improves my lifestyle in that respect

7/12/2010 10:25:18 PM

Okay, let's see here:

I smoke a pack a day...at $5.50/pack, 365 days/year, that comes to about two thousand dollars...

Some of that will invariably go to replacement lozenges. But I think I can still clear a thousand dollars in savings on nicotine by this time next year...

7/12/2010 10:48:15 PM

Quote :

"I think paying for everything in cash is a great way of reining in your excess spending."

Go right ahead. I'll continue to enjoy my cash back rewards card. I can also easily track every aspect of my spending and never have to worry about blowing "free money" via one of those idiotic systems Dave Ramsey recommends.

7/12/2010 11:17:03 PM

^ Good job reading the rest of what I wrote

7/12/2010 11:33:45 PM

Even if I was forced to use cash I would not think "paying for everything in cash is a great way of reining in your excess spending"

7/12/2010 11:42:29 PM

If you are a person who thinks, "Gee where does all of my money go," then yes, yes it does. You take out $50 for your week and you don't spend anything beyond that because the money simply isn't there. With a debit card it's easy to say, "Well yeah, I have enough extra cash in the bank to get this latte I suppose." That's not an option if you're only dealing with hard currency.

So yes, I do recommend sticking to cash if you're attempting to rein in excess spending. It's a very visual aid in seeing where you money is going and once you are in the habit of only spending a strict amount you can start going back to your credit card.

I think a perfect example of this is a coworker of mine that said, "I'm worried about not being able to use my credit card here because I currently use it only spending what I know I have or will have in the future." Someone like that is in for a world of financial hurt when an unexpected emergency expense emerges.

7/12/2010 11:48:11 PM

Quote :

"If you are a person who thinks, "Gee where does all of my money go," then yes, yes it does. "

Are you actually suggesting that using nothing but cash makes it easier to track where your money goes?

Can you tell me how much money you've spent ytd?
How about money on food?
Money on fast food?
Specifically at one certain fast food establishment?

Yea......exactly.

7/12/2010 11:55:11 PM

You're missing the point.

If you are a person who has a money spending problem, using a card is not going to help you with that problem because there is "always money" when you can just swipe a card. So if you are trying to limit the amount of money you are spending, using cash is an easy way to do this since you can never spend more than you have in your wallet.

Is this really that difficult of a concept?

7/13/2010 12:35:31 AM

^^I think the basic function of the cash-only approach is that when the cash runs out, it runs out.

If you largely use a credit card or a debit card, it's easier to continue spending even after you've surpassed whatever budget you had planned for that week or month. You clearly don't have a problem with overspending in that way, but some people do, and the cash approach helps decrease the instances of overspending. Furthermore, actually holding the money and watching the twenties dwindle into tens and then ones helps people be more mindful...

7/13/2010 12:38:17 AM

Quote :

"Can you tell me how much money you've spent ytd? How about money on food? Money on fast food? Specifically at one certain fast food establishment?"

I am on an all-cash system and the answers are yes, yes, yes, and no.

And I can tell you those answers without even opening a checkbook or getting on the internet.

I have never gone a penny over budget on any of them, and any time I go under budget - that becomes my new budget for the next month, because I obviously proved that I could live happily at that level.

7/13/2010 3:49:54 AM

The only thing about cash is I like to drink, I would almost rather not have that laying around.

Also I like being able to log in to Mint.com and see exactly where my money went.

7/13/2010 7:51:03 AM

Quote :

"Is this really that difficult of a concept?"

No, but people's lack of self control is. I don't see how some people have enough self discipline to control every aspect of their lives except for money.

7/13/2010 8:16:15 AM

Quote :

"I HEAR SOME DAVE RAMSEY!"

I have read his book, the one that came out 2 years ago, and was not impressed. His advice and tips are useless for anyone college graduate with a good job with a shred of financial common sense.

His target audience is more focused on working class peoples, peoples without financial discipline, and familes whose head of household lack financial responsibility.

7/13/2010 9:09:49 AM

Agreed. I remember the one scenario that comes up often where he suggested you pay off the credit card with the lowest balance first regardless of interest rate.

7/13/2010 9:26:16 AM

^who often times are the crowds that wouldn't start reading or listening to Dave Ramsey regardless. That being said I still like to read what he says and adjust it to suit me specifically. Sometimes a concept can be obvious but it takes an external reminder to make it really happen.

Quote :

"in before the "i went over on my cell bill this month and wiped out my entire savings" thread."

Won't happen for the same reason Str8BacardiL said. By not being on contract I can change my plan all the time, so if I need more one month then I can make it happen. By not constantly upgrading my cell phone and staying on contract I have regained a force as a customer and my provider has to work to keep me. This provides financial rewards and incentives.


Regarding this whole cash debate, I have done the only cash method and I have also done a check card. Now, I basically survive off a hybrid of the two. Every two weeks I have a set amount put into one of my checking accounts and use only that card for goods and services. Once the money is gone, it is gone. The problem, for me, with using cash all the time is too many random instances come up (weddings, holidays, birthdays, etc...) where I'd have to veer of course from my budget anyways, thus not operating strictly to my cash only policy.

7/13/2010 9:37:53 AM

Yeah I think for a lot of people they have a lot of shit they're paying for but don't really need to be happy/comfortable/whatever.

I haven't had a TV in 4 years, just watch what I want online or rent the occasional movie.
I recently switched to a cell phone plan that's $15/month and is still more than I really need but works well for what I need it for.

Canceled my gym membership and just bike/hike more than I was in the past.

Canceled my land-line since I wasn't really using it anyway.

Don't own a car so don't have to worry about car payments/insurance/etc.

Granted I know once I move back to Raleigh things like the car will have to change but I do think the average person could pay for a lot less services than they currently do and still be perfectly happy

7/13/2010 9:55:08 AM