Most of us have been in the situation in the past 10 years where we were spending more than we saved. I, for one, used to thrive on Retail Therapy and try to keep up with the Joneses when it came to cars, gadgets, clothes and all sorts of stuff. But this type of spending is bad for your financial health and can make your savings account feel like a bucket with a hole in it. If you are actively trying to cut back, see if you are victim to any of these “big-time money wasters”.

1. Fast food/restaurant lunches – We all know how much money this wastes but it is a hard habit to break, especially for those of us who work outside of the home. Bringing your lunch just takes a little forethought and planning. Depending on your current lunch habits, it can save you as much as $200/month.

2. Designer whatever – I LOVE name brands but you can look good for much less. These days the fashion magazines have oodles of articles on how to “get this look” for less. You can also find great styles at discount and consignment stores at a fraction of the price. Savings: $200-1000/month.

3. Kid’s video games and collectibles – My son got a Wii from his grandpa and boy do those games cost a bundle. See if you can start a “game trade” with your kid’s friends so they can have new games but not break the bank. Recently, I also had to break my 8-year old of his Pokemon card habit, which cost me $5-10 every time I went to Target. Savings: $75-100/month.

4. Grocery store checkout aisle magazines – I am a decorating magazine addict and I used to get them at the grocery store but you can save TONS on yearly subscriptions to your favorites. I paid $18 for 24 months of Country Home when the grocery store price was $4.95 for one magazine! Savings: $60-120/year.

5. Luxury automobiles and “status” cars – You can waste $10-30,000 buying for status vs. transportation. I won’t “out” myself by admitting they type of German car I used to drive but I have a nice little compact wagon that gets great gas mileage and I saved at least $15,000 on the sticker price.

Happy Savings!
Julie Arnheim and Darcy Ratner, Founders, rubbingnickels.com

a friend