With personal saving at its lowest level since 2001 (expected to fall below 1 percent by the end of this year) there must be some creative thinking to get things turned around. Experts at bankrate.com have identified the following popular items as 10 of the “ biggest money drains,” that leave too many families broke and without a savings cushion:
Coffee. At an average price of $1.38 per cup (or more, depending on whom you buy it from) your daily cuppa can cost you at least $3.60 per year, money that could be building your savings account.
Cigarettes. The average price-per-pack in the United States is $4.54, adding up to about $1,660 each year.
Alcohol. Costs vary widely, depending on your choice of beverage, where you live and your favorite watering hole. But, with tip, the average cost of one beer is $5. If you indulge in two per day, the cost could mount to $3,650 per year. If your spirit of camaraderie leads you to “treat,” friends, the cost goes up commensurately.
Bottled water. A liter is, on average, $1.50, multiplying to $540 a year if you stop at one per day. The habit not only costs you, but is a detriment to the environment as the plastic containers stack up.
Manicures. It’s a feel-good luxury you can’t afford if you haven’t any savings. A $20-per-week visit to the manicurist robs your savings of $1,068 in a year. A bottle of nail polish is approximately $5.
Car washes: The average cost is $58 with detailing thrown in. But if you take the option every two months, that’s $348 per year.
Buying lunch every day. The daily cost of eating lunch out every workday is about $9 – $2,350 per year. Making a lunch at home is a nuisance, but the sacrifice will seem worth it as you watch your financial safety net grow stronger.
Vending machine snacks. Each little visit to the machine costs about a dollar, about $260 per year if you succumb every working day to the lure of chips and chocolate.
Interest on credit card bills. The median amount of credit card debt in America is $6,600. The average credit interest rate is 13.44 percent. Making just the minimum payment, it will take you 21 years to ride yourself of that debt – if you resist the urge to perpetuate it. Make real effort to whittle the amount down faster by making additional payments on the principal.
Unused memberships. If you have a $40-per-month membership in a spa or gym or any other type of activity that requires a regular fee and fail to use it, you’ve lost $40 per month. Use it or get rid of it.
You can’t just change your appetite. You have to change your point of view. But with a little self-discipline, you can find the wherewithal to help your savings grow. You’ll be happy that you did.