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Balanced Life Tip: Plugging A Leaky Wallet
You spend money every day. A pack of mints here, a cup of coffee there and before you know it, your wallet is
empty and you are once again at the ATM or getting cash back with a purchase. You may have actually
purchased something you did not want in order to get the cash.
It seems life itself is conspiring against your desire to save money. It may not be a conspiracy but the idea is
not too far from the truth.
Over the last 20 years, we have created a society that depends on convenience and demands immediate
gratification. We seem willing to pay for both. We just do not realize how much they actually cost because we
pay for them, literally, a few pennies at a time.
It is as if our wallets had slow but very steady leaks until at the end of the month, we find ourselves wondering
where all the money went. The good news is that tiny leaks are easy to fix. With a few small changes in our
attitudes and behaviors, we can see a very real difference in our wallets. Here is what you need to know.
Pennies add up. We have all heard the urban myth of the panhandler who gets into a Rolls Royce at the end of
the day. This myth is based in solid financial savvy. There is no such thing as a worthless coin. Small
amounts of money add up over time. We consistently toss away a few cents here and there because it does
not seem worth the extra effort it takes to save them.
Take a few extra seconds to compare unit prices in the grocery store. Walk a few blocks to use your bank’s
ATM and save the fees. Choose regular coffee instead of a double decaf mocha frothochino. Pennies quickly
add up to dollars in your wallet.
Paper or plastic? For years, consumer scientists have been pointing out that people spend more when they
use a card than when they pay with cash. Whether a credit card or an ATM debit card, it is easier to swipe than it
is to pry the cash out of your pocket. Consider allotting yourself a daily amount of cash and pay attention to how
you spend it.
Convenience costs. Vendors in the lobbies of office buildings charge more for a pack of gum than does the
local drug store because they can. People are conditioned to pay for convenience. We think nothing of paying
outrageous prices for things because of where we buy them. Consider how much we pay for a soda at an
amusement park, a bag of chips at an airport or the snacks in the hotel mini-bar.
In my neighborhood, there are two gas stations practically across the street from one another. One of them
consistently charges a few cents a gallon more than the other. Why does anyone buy gas at the more
expensive station? They are paying for the convenience of not having to drive across the street. It sounds crazy,
but it is true. If you know you are going to be in a location where exorbitant prices are to be expected, plan
ahead. Tuck a granola bar into your backpack or briefcase. Pick up snacks before you go head off to the airport
or back to your hotel.
Habits camouflage spending. We cease noticing we are spending money when we accommodate a habit.
Smokers barely notice the money they spend on tobacco. But they are not alone. Any habit will do. The daily
drive-through breakfast, the premium coffee and the vending
machine at work will equally drain your wallet. When you
discover one of these expensive habits in your life, break it as
fast as you can. Think of ways around it. Get up a few minutes
earlier to eat a healthy breakfast. Take coffee from home in a
travel mug. Keep grocery store bought candy bars in the bottom
drawer of your desk.
People do not like to think too much. From the factory worker to
the CEO, too many people in our society think that when
something is more expensive, it is better. While better quality
will often raise the price of an item, it does not follow that an expensive item is better quality. Go one step
further and challenge yourself on the appropriate quality for the things you buy. Adequate is usually enough.
Take the 30 day challenge. Try to keep track of every cent you spend. Note when you spend money, what you
buy and how much you pay. Just thinking about it will probably make you spend less. At the end of the month,
you will not only realize how much money you have been overspending, you will have gone a long way toward
establishing new spending habits that can bring about dramatic changes in your finances.
empty and you are once again at the ATM or getting cash back with a purchase. You may have actually
purchased something you did not want in order to get the cash.
It seems life itself is conspiring against your desire to save money. It may not be a conspiracy but the idea is
not too far from the truth.
Over the last 20 years, we have created a society that depends on convenience and demands immediate
gratification. We seem willing to pay for both. We just do not realize how much they actually cost because we
pay for them, literally, a few pennies at a time.
It is as if our wallets had slow but very steady leaks until at the end of the month, we find ourselves wondering
where all the money went. The good news is that tiny leaks are easy to fix. With a few small changes in our
attitudes and behaviors, we can see a very real difference in our wallets. Here is what you need to know.
Pennies add up. We have all heard the urban myth of the panhandler who gets into a Rolls Royce at the end of
the day. This myth is based in solid financial savvy. There is no such thing as a worthless coin. Small
amounts of money add up over time. We consistently toss away a few cents here and there because it does
not seem worth the extra effort it takes to save them.
Take a few extra seconds to compare unit prices in the grocery store. Walk a few blocks to use your bank’s
ATM and save the fees. Choose regular coffee instead of a double decaf mocha frothochino. Pennies quickly
add up to dollars in your wallet.
Paper or plastic? For years, consumer scientists have been pointing out that people spend more when they
use a card than when they pay with cash. Whether a credit card or an ATM debit card, it is easier to swipe than it
is to pry the cash out of your pocket. Consider allotting yourself a daily amount of cash and pay attention to how
you spend it.
Convenience costs. Vendors in the lobbies of office buildings charge more for a pack of gum than does the
local drug store because they can. People are conditioned to pay for convenience. We think nothing of paying
outrageous prices for things because of where we buy them. Consider how much we pay for a soda at an
amusement park, a bag of chips at an airport or the snacks in the hotel mini-bar.
In my neighborhood, there are two gas stations practically across the street from one another. One of them
consistently charges a few cents a gallon more than the other. Why does anyone buy gas at the more
expensive station? They are paying for the convenience of not having to drive across the street. It sounds crazy,
but it is true. If you know you are going to be in a location where exorbitant prices are to be expected, plan
ahead. Tuck a granola bar into your backpack or briefcase. Pick up snacks before you go head off to the airport
or back to your hotel.
Habits camouflage spending. We cease noticing we are spending money when we accommodate a habit.
Smokers barely notice the money they spend on tobacco. But they are not alone. Any habit will do. The daily
drive-through breakfast, the premium coffee and the vending
machine at work will equally drain your wallet. When you
discover one of these expensive habits in your life, break it as
fast as you can. Think of ways around it. Get up a few minutes
earlier to eat a healthy breakfast. Take coffee from home in a
travel mug. Keep grocery store bought candy bars in the bottom
drawer of your desk.
People do not like to think too much. From the factory worker to
the CEO, too many people in our society think that when
something is more expensive, it is better. While better quality
will often raise the price of an item, it does not follow that an expensive item is better quality. Go one step
further and challenge yourself on the appropriate quality for the things you buy. Adequate is usually enough.
Take the 30 day challenge. Try to keep track of every cent you spend. Note when you spend money, what you
buy and how much you pay. Just thinking about it will probably make you spend less. At the end of the month,
you will not only realize how much money you have been overspending, you will have gone a long way toward
establishing new spending habits that can bring about dramatic changes in your finances.
