Frugal Friday Pt 3

You’d had two weeks to write everything down. Every cent you spent, right?
Even two weeks is enough for some things to stand out. How much did you spend on coffee or other drinks bought by the cup or can? Author David Bach refers to this as the Latte Factor, the fact that even $5/day invested at 10% will grow to a million dollars over 40 years. Ok, maybe we need to lower expectations, you may not earn 10% per year, but that $5 per day is just the beginning. When my 10 year old took an interest in a particular magazine, I saw that one issue was $4, but 10 issues/yr cost $14 for the subscription, less than the cost of 4 issues. Ever read a book a second time? Most people don’t. And many libraries will let you place a hold on a book and notify you when it comes in. Movies fall into a similar category, how much did the last theater visit cost you? $50? $100? It’s easy for the dollars to add up, the tickets, popcorn, drinks, and then a meal out. Our library system let you reserve DVDs by title as well, I often get a new release within days of release.
As you keep a daily journal of spending, what pops out will be unique to you, and only you can decide what you are willing to give up. If you are currently paying interest on your credit cards, think about that daily coffee as $1250 per year on which you are paying $200 interest. David Bach’s million may seems too far away, but the $200 is here and now. Until next week
Joe