Last weekend I did analysis of my annual credit card spend. I was shocked to see the results. We have spent almost $5000 on eating out. That is over $400 a month. It is a staggering number. My goal for 2018 is to reduce the amount spend on eating out by half.
Below are the actions that I will take:
- Preemptive Strike – Starting January 2018 I will increase the monthly auto debit amount to my broker account by $200 per month. Save before I spend.
- Track Performance – Using spend analyzer functionality that Citi Cards provide I will start tracking my monthly expenses.
Over the years I have identified and reduced some of the expenses (per year savings):
- My parents live in India so I had landline from Vonage (A VOIP service). I was paying close to $40 a month/$480 per year. I canceled that service and switched to Google calling card. Now my expense is no more than $10 per year. Savings – $470
- I paid off my car and I plan to keep it for the next 3 years. Savings – $4116
- Signed two-year deal with Verizon for cable, got free HBO for two years & price reduced from $153 to $123. I have no DVR and have two boxes. Savings – $360
- I do bulk shopping for my hobby which is Golf during the holiday season. The Golf ball that I play with costs $39.99 during the regular season and during the holiday season the price comes down to $31.99. This lower price combined with Dick’s sporting coupon I purchased 4 dozen balls and my price was $22 a dozen. Savings – $72
- I pay all my recurring bill like Insurance, Real Estate taxes, School taxes in one payment. They all offer discounts for not using payment plans.
- Also, check out Josh Hasting’s blog MoneyLifeWax.com for kick starting your savings plan. He shares his story about how he and his wife were quickly able to pay down their student loans.
Do an analysis of how you spend your money. Challenge yourself and figure out ways to reduce some of those expenses. Money saved is money earned. Happy Saving & Happy Investing!