Become A Savvy Saver
Become a Savvy Saver
Throughout these last several months I have had a lot of time to reflect on something I hate thinking about….my budget (or lack thereof). And as we have all been doing everything at home from cooking three meals a day to coloring our own hair, we are learning we are able to do more for ourselves than maybe we realized a few months ago. Now that I have been forced to make these changes, I am seeing that some of them are actually positive and a good way to make some wiser financial choices.
Now let’s be honest….budgets, finances, money they are all things we don’t like to think about but things we ‘have’ to think about. And whether you have millions or hundreds in the bank it is something we all should have a handle on. My dad has always said “just because you can doesn’t mean you should.'' And that is as true today as always. So, as I began thinking about my own finances and as we all have been doing a lot of DIY as of late, it gave me the idea for this blog post hoping it may offer some bit of encouragement for you as well.
None of these ideas I am about to suggest are revolutionary, but I do think they bare repeating. I have also done a little math, another thing I am not fond of, to put some figures down to solidify my point and add some weightiness to this difficult topic, at least for myself. For me I need to “see” the money for it to really impact me. These ideas are things I am hopeful to hold onto even as things begin to open back up.
As I begin to lay this out let me say this whole idea isn’t about giving up the things you enjoy but just doing them less often to balance the scales a bit.
These prices I will be mentioning are based on averages, so not NYC prices but not also middle of small-town American prices.
So, let’s start with beauty:
Now I will be the first to admit that I won’t be giving up my nail salon, in fact I already went this week after two home manicures and toes that hadn’t been cared for in months. However, I can plan to go less often which is the key. Every time I get a gel mani/pedi it costs approximately $120 including tip. If I opt to only go to the salon to get my nails done once a month instead of twice, like I currently do (or did), I will save close to $1440 a year.
Next let’s talk about hair. Now this one truly depends on your own hair and how often you are going to see your stylist currently. For myself, I currently go to the salon every 7-8 weeks for color and a haircut (about 7 times a year).
Just before COVID I had already decided that I didn’t have to get my haircut every time I went to get my hair colored and I will continue to stay with that plan but I am also realizing I can get my hair colored less. Typically for me I get a more technical color technique like balayage every other time, so every 14-16 weeks. But every 7-8 weeks I get my roots covered and my hair cut. So, if I cover my own roots (which I did a few weeks ago and it worked out really well) 3 times a year and skip 3 haircuts a year and limit my salon visits to 3 to 4 times a year for color and cut it would be a good option for me. On average a haircut and color costs about $300, $340 with tip. So, by making this adjustment I can save around $1020 a year.
Now onto food……
Coffee at home versus out. Making coffee at home in the morning instead of running by your local coffee shop 7 days a week also really adds up. Assuming the average coffee is around $6 if you opt to make your coffee at home in the morning or forego afternoon coffees at Starbucks you will save around $1440 a year. Personally I don’t spend a lot of money on coffee. I may buy about 5 coffees a week so while I can still cut down some this isn’t a huge expense for me but it is for so many people so I wanted to add it in.
When I go out to dinner with Erik or friends, I typically have a drink at the bar before sitting at the table. And every time I have that extra drink, I am adding additional cost to my night out. So if I go out to a nice dinner a couple times a week, and a drink on average, costs about $17 with tip, if I opt for a glass of wine at home before heading to the restaurant or wait to order my first drink at the table (b/c let’s be honest I don’t have just one) I will save approximately $1632 a year just by making that small adjustment. And while this may not be the rule every time I go out for dinner even if I do it 70% of the time, I am saving good money.
Eating more meals at home…this is a tough one for me! I often eat a lot of meals out. Usually because of convenience and time but I need to work on scaling this way back and obviously over the last few months my hand has been forced to do so. I am taking this on average from eating lunches and dinners I would normally eat out or order in.
Again, working on averages here, if ordering in lunch/dinner or eating them out the majority of the week I am averaging about $25-$65 per meal. If I can stick to eating all but 5-8 meals a week at home, I can save between $6,000-$12,480 a year! This will vary depending on the week and time of year due to the nature of my business.
And finally, workouts….
Now it’s time to take a look at home workouts. I love taking classes and that is what I do the majority of the time. Since this pandemic we have all been forced out of our gyms and workout classes causing us to take more walks, bikes rides, go for runs and hikes or do classes online. Two apps that I have really been enjoying myself are the Peloton app and the Core Power Yoga app. You don’t have to have a Peloton bike to use the app as they offer a ton of options. And CPY isn’t just yoga but a variety of great options. But there are so many other great options like Beach Body and Pop Sugar, not to mention countless trainers on YouTube and Instagram. My point is you can save so much money by opting for “at home” workouts. My workout plan for the future is to continue going to classes twice a week but then the rest of the time using the apps for my workouts or going for a run. There are many options for free or you can pay around $20 a month (per app) to take all the classes you want online. So, the savings here are substantial.
On average a class is around $25 so if you take those classes 5 days a week you are spending a ton of money every month on working out! And many gyms are very expensive as well or you are paying for the gym but still taking the expensive studio classes. So, dropping it down to twice a week will allow me to save around $3600 a year!
So, once I do all my math, I am really saving a lot of money just by making a handful of relatively minor changes. I am not really letting go of any of the things I love but limiting them to a more realistic amount so save a lot of money. And again, even having the money to pay for all of these things doesn’t necessarily mean one should. Everyone has to be accountable to themselves for how they spend but these past few months have really been eye opening for me as to ways I could spend my money more wisely and make better decisions.
In total, if I stick to this plan, I am looking to save between $16,332 - $22,092 a year or $1361 - $1841 a month! So, who wouldn’t want to save that much a month?! And I am still getting my hair colored, having fun meals out, going to my spin class; I’m just doing it in moderation!
So, may I encourage you to take a little time to sit down and look at the lavish extras you do for yourself and see where you may be able to make some adjustments and grow your savings account, your travel fund, or your rainy-day piggy bank.
Happy Saving Friends! XO!
- Tamara
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