Comments on: Can You Eliminate $500 of Your Expenses Each Month? http://www.consumerismcommentary.com/2008/08/14/can-you-eliminate-500-of-your-expenses-each-month/ A premiere personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Sun, 08 Nov 2009 07:50:42 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: TF Miser http://www.consumerismcommentary.com/2008/08/14/can-you-eliminate-500-of-your-expenses-each-month/#comment-174741 TF Miser Mon, 18 Aug 2008 21:56:53 +0000 http://www.consumerismcommentary.com/?p=3670#comment-174741 I only spend about a $1000 a month. A 50% cut would be pretty difficult. I only spend about a $1000 a month. A 50% cut would be pretty difficult.

]]> By: Ken http://www.consumerismcommentary.com/2008/08/14/can-you-eliminate-500-of-your-expenses-each-month/#comment-174231 Ken Sat, 16 Aug 2008 07:07:56 +0000 http://www.consumerismcommentary.com/?p=3670#comment-174231 That's an interesting challenge. I think that would be about 1/6 of my current salary... or 16%... a challenge. But then we're not very careful with our $$$ That’s an interesting challenge. I think that would be about 1/6 of my current salary… or 16%… a challenge. But then we’re not very careful with our $$$

]]> By: Hondo http://www.consumerismcommentary.com/2008/08/14/can-you-eliminate-500-of-your-expenses-each-month/#comment-174139 Hondo Fri, 15 Aug 2008 17:09:56 +0000 http://www.consumerismcommentary.com/?p=3670#comment-174139 -- David I agree that $190/ month on groceries would be hard to do even for just myself. Sometimes I wish I was a smaller guy so I could afford to spend less on groceries but I have a raging appetite and I must feed the hunger or I feel my stomach would eat itself. I suggest trying a grocery price log to track prices of everyday grocery items from various stores. You may be surprised to find out how much you can save. Do a Google search for a grocery price log or if you can't find one I have a link at my blog for a simple one you can print out or copy in Excel. Cheers – David

I agree that $190/ month on groceries would be hard to do even for just myself. Sometimes I wish I was a smaller guy so I could afford to spend less on groceries but I have a raging appetite and I must feed the hunger or I feel my stomach would eat itself. I suggest trying a grocery price log to track prices of everyday grocery items from various stores. You may be surprised to find out how much you can save. Do a Google search for a grocery price log or if you can’t find one I have a link at my blog for a simple one you can print out or copy in Excel.

Cheers

]]> By: Hondo http://www.consumerismcommentary.com/2008/08/14/can-you-eliminate-500-of-your-expenses-each-month/#comment-174131 Hondo Fri, 15 Aug 2008 16:52:43 +0000 http://www.consumerismcommentary.com/?p=3670#comment-174131 Personally, I itemize every single dollar I spend and save each month. I find it useful to see how I sometimes nickel and dime away a sizeable portion of my take home that I could have otherwise saved or invested. But the drawback to this itemization is the physiological side. I may look at the large % of my monthly salary that I saved or invested and feel like I can "treat" myself to some of the more wasteful things in life with what is left over. Thing is, I know it's financial wrong but I justify it by saving first and using some of the remainder as my play money. So if look at my finances, I can easily save $500 a month but that would cut into my "perceived" quality of life. So for now as a young person, I'm happy with my current savings rate and the ability to maintain my freedom to do financially irresponsible things. Breaking that physiological barrier is a tough thing to do. I have to focus on thinking past the current month into the future for my ultimate savings or retirement goals. Personally, I itemize every single dollar I spend and save each month. I find it useful to see how I sometimes nickel and dime away a sizeable portion of my take home that I could have otherwise saved or invested. But the drawback to this itemization is the physiological side. I may look at the large % of my monthly salary that I saved or invested and feel like I can “treat” myself to some of the more wasteful things in life with what is left over. Thing is, I know it’s financial wrong but I justify it by saving first and using some of the remainder as my play money. So if look at my finances, I can easily save $500 a month but that would cut into my “perceived” quality of life. So for now as a young person, I’m happy with my current savings rate and the ability to maintain my freedom to do financially irresponsible things. Breaking that physiological barrier is a tough thing to do. I have to focus on thinking past the current month into the future for my ultimate savings or retirement goals.

]]> By: Mike http://www.consumerismcommentary.com/2008/08/14/can-you-eliminate-500-of-your-expenses-each-month/#comment-173972 Mike Fri, 15 Aug 2008 02:26:41 +0000 http://www.consumerismcommentary.com/?p=3670#comment-173972 Great post Flexo. I continuously talk with my wife about this. Each month when we review our financial position, we look at a detailed analysis from our online bank statement, download it into excel and determine where we could've been better each month. For us, it is usually the categories of "groceries", "dining out", and "entertainment." Apparently we like to eat good food! We could easily trim our expenses in these categories, and need to do a better job on a weekly basis regarding these purchases. Great post Flexo. I continuously talk with my wife about this. Each month when we review our financial position, we look at a detailed analysis from our online bank statement, download it into excel and determine where we could’ve been better each month. For us, it is usually the categories of “groceries”, “dining out”, and “entertainment.” Apparently we like to eat good food! We could easily trim our expenses in these categories, and need to do a better job on a weekly basis regarding these purchases.

]]> By: Scott http://www.consumerismcommentary.com/2008/08/14/can-you-eliminate-500-of-your-expenses-each-month/#comment-173966 Scott Fri, 15 Aug 2008 01:48:49 +0000 http://www.consumerismcommentary.com/?p=3670#comment-173966 When I started working from home, I was able to cut $2,300 a year off my Starbuck's addiction. It became a habit every morning and afternoon to stop by Starbucks for my daily fix. Now I brew my own pot and spent about 25 cents a day. When I started working from home, I was able to cut $2,300 a year off my Starbuck’s addiction. It became a habit every morning and afternoon to stop by Starbucks for my daily fix. Now I brew my own pot and spent about 25 cents a day.

]]> By: TML http://www.consumerismcommentary.com/2008/08/14/can-you-eliminate-500-of-your-expenses-each-month/#comment-173913 TML Thu, 14 Aug 2008 20:56:43 +0000 http://www.consumerismcommentary.com/?p=3670#comment-173913 Allstate + local agent + 'relationship" + higher premium = spending rationalization. You can get the same multiple policy discounts at a lower cost provider, such as GEICO. If you file a large claim and Allstate claims department wants to deny it, your agent will be powerless to intervene. Insurance is a money business - accept it. Allstate + local agent + ‘relationship” + higher premium = spending rationalization.
You can get the same multiple policy discounts at a lower cost provider, such as GEICO. If you file a large claim and Allstate claims department wants to deny it, your agent will be powerless to intervene. Insurance is a money business – accept it.

]]> By: APFB http://www.consumerismcommentary.com/2008/08/14/can-you-eliminate-500-of-your-expenses-each-month/#comment-173909 APFB Thu, 14 Aug 2008 20:41:42 +0000 http://www.consumerismcommentary.com/?p=3670#comment-173909 We could probably save some money on our car insurance if we shopped around. We have Allstate through a local agent who has been providing insurance for my wife's family for a long time. We feel very comfortable having insurance from someone we can contact in person at just about any time. Additionally, we get a discount for having our homeowners insurance with him, as well. So if we changed car insurance, we would likely have to change homeowners in order to maximize our savings. I think the benefit of having a local long-term relationship with an agent can pay off in other ways down the road. We could probably save some money on our car insurance if we shopped around. We have Allstate through a local agent who has been providing insurance for my wife’s family for a long time. We feel very comfortable having insurance from someone we can contact in person at just about any time. Additionally, we get a discount for having our homeowners insurance with him, as well. So if we changed car insurance, we would likely have to change homeowners in order to maximize our savings. I think the benefit of having a local long-term relationship with an agent can pay off in other ways down the road.

]]> By: Kevin http://www.consumerismcommentary.com/2008/08/14/can-you-eliminate-500-of-your-expenses-each-month/#comment-173882 Kevin Thu, 14 Aug 2008 18:54:43 +0000 http://www.consumerismcommentary.com/?p=3670#comment-173882 Wait -- you don't have renter's insurance? Dude, come on. $12/month is what we used to pay for $23,000+ worth of coverage. Stop doing whatever you're doing and go get it. Seriously! Wait — you don’t have renter’s insurance?

Dude, come on. $12/month is what we used to pay for $23,000+ worth of coverage.

Stop doing whatever you’re doing and go get it. Seriously!

]]> By: Jason H http://www.consumerismcommentary.com/2008/08/14/can-you-eliminate-500-of-your-expenses-each-month/#comment-173880 Jason H Thu, 14 Aug 2008 18:52:07 +0000 http://www.consumerismcommentary.com/?p=3670#comment-173880 I would say the one reason to go ahead and get a whole life insurance policy is that you would be paying your premium based on your current age and the younger you are the cheaper it is. I pay $500/year for a $250k policy because it is based on me being 22 when I started it. Then I just added my wife as the beneficiary when we got married. I would say the one reason to go ahead and get a whole life insurance policy is that you would be paying your premium based on your current age and the younger you are the cheaper it is. I pay $500/year for a $250k policy because it is based on me being 22 when I started it. Then I just added my wife as the beneficiary when we got married.

]]> By: Jesse http://www.consumerismcommentary.com/2008/08/14/can-you-eliminate-500-of-your-expenses-each-month/#comment-173877 Jesse Thu, 14 Aug 2008 18:40:15 +0000 http://www.consumerismcommentary.com/?p=3670#comment-173877 PS I forgot one thing above: I also saved a ton of money by ordering things online. All my protein powder, multivitamins and stuff I ordered online. Its amazing how much cheaper it is. PS I forgot one thing above: I also saved a ton of money by ordering things online. All my protein powder, multivitamins and stuff I ordered online. Its amazing how much cheaper it is.

]]> By: Jesse http://www.consumerismcommentary.com/2008/08/14/can-you-eliminate-500-of-your-expenses-each-month/#comment-173869 Jesse Thu, 14 Aug 2008 18:10:31 +0000 http://www.consumerismcommentary.com/?p=3670#comment-173869 Flexo: ironically when I started eating healthy when I was single was when I saved the most money on food. Its true most things are packaged for families but surprisingly the more hardcore I got about my eating healthy, the cheaper and easier it got. I doubt it would be for most people because the catch is that my diet was targeted toward bodybuilding, which many people probably would get sick of very fast. Egg white omlettes in the morning, protein shakes galore (a huge bucket of chocolate flavored protein + gallon of milk is a cheap and effective combo). Veggies and fruits, Tuna, chicken breasts, cottage cheese, peanut butter and the like were all staples. One other suggestion for people concerned about the cost of fruits and veggies: I would suggest having a garden if you can. Right now I have an almost unlimited supply of tomatoes, cucumbers, radishes, and peppers with a bunch of honeydew melons on the way....and my garden isn't all that big. I live in a very dry place and the water cost for the garden is maybe $10-$15/ month if I had to guess. It paid itself back long ago in the summer. We're also going to pickle some of cucumbers for winter. Its really a great way to save money on fruits and veggies. Flexo: ironically when I started eating healthy when I was single was when I saved the most money on food. Its true most things are packaged for families but surprisingly the more hardcore I got about my eating healthy, the cheaper and easier it got. I doubt it would be for most people because the catch is that my diet was targeted toward bodybuilding, which many people probably would get sick of very fast. Egg white omlettes in the morning, protein shakes galore (a huge bucket of chocolate flavored protein + gallon of milk is a cheap and effective combo). Veggies and fruits, Tuna, chicken breasts, cottage cheese, peanut butter and the like were all staples.

One other suggestion for people concerned about the cost of fruits and veggies: I would suggest having a garden if you can. Right now I have an almost unlimited supply of tomatoes, cucumbers, radishes, and peppers with a bunch of honeydew melons on the way….and my garden isn’t all that big. I live in a very dry place and the water cost for the garden is maybe $10-$15/ month if I had to guess. It paid itself back long ago in the summer. We’re also going to pickle some of cucumbers for winter. Its really a great way to save money on fruits and veggies.

]]> By: David http://www.consumerismcommentary.com/2008/08/14/can-you-eliminate-500-of-your-expenses-each-month/#comment-173845 David Thu, 14 Aug 2008 16:32:31 +0000 http://www.consumerismcommentary.com/?p=3670#comment-173845 How do you only spend $190 for groceries every month, that's impressive! Even for my wife and I, we are averaging about $500-$550 each month, and that's with fresh fruits/veggies/cooking from scratch most nights. How do you only spend $190 for groceries every month, that’s impressive! Even for my wife and I, we are averaging about $500-$550 each month, and that’s with fresh fruits/veggies/cooking from scratch most nights.

]]> By: TML http://www.consumerismcommentary.com/2008/08/14/can-you-eliminate-500-of-your-expenses-each-month/#comment-173837 TML Thu, 14 Aug 2008 15:28:55 +0000 http://www.consumerismcommentary.com/?p=3670#comment-173837 You definitely need to re-visit the work-lunch spending thing. You will save more than enough money to get rid of that student loan debt and drop any extra weight in the process. I challenge you to run the numbers on brown-bagging vs. lunching out for 6 months - you will be amazed. BTW - no home prep required. I bring soup most days - $1.50/can and 90 seconds in the microwave. You definitely need to re-visit the work-lunch spending thing. You will save more than enough money to get rid of that student loan debt and drop any extra weight in the process. I challenge you to run the numbers on brown-bagging vs. lunching out for 6 months – you will be amazed. BTW – no home prep required. I bring soup most days – $1.50/can and 90 seconds in the microwave.

]]> By: Him http://www.consumerismcommentary.com/2008/08/14/can-you-eliminate-500-of-your-expenses-each-month/#comment-173827 Him Thu, 14 Aug 2008 14:24:22 +0000 http://www.consumerismcommentary.com/?p=3670#comment-173827 You have a cat named Rupert? That's awesome. You have a cat named Rupert? That’s awesome.

]]> By: jim http://www.consumerismcommentary.com/2008/08/14/can-you-eliminate-500-of-your-expenses-each-month/#comment-173810 jim Thu, 14 Aug 2008 12:39:29 +0000 http://www.consumerismcommentary.com/?p=3670#comment-173810 One thing to watch out for is over-optimizing. You don't want to ratchet things back that you have a backlash and go on some spree as a release from your self imposed optimizations. For example, you decide to stop buying something in bulk to cut it out but instead randomly buy the same items, at higher ala carte prices... something like that can easily happen. One thing to watch out for is over-optimizing. You don’t want to ratchet things back that you have a backlash and go on some spree as a release from your self imposed optimizations. For example, you decide to stop buying something in bulk to cut it out but instead randomly buy the same items, at higher ala carte prices… something like that can easily happen.

]]> By: plonkee http://www.consumerismcommentary.com/2008/08/14/can-you-eliminate-500-of-your-expenses-each-month/#comment-173807 plonkee Thu, 14 Aug 2008 12:19:59 +0000 http://www.consumerismcommentary.com/?p=3670#comment-173807 Food. I think I could save money on food, but I too have accepted failure at bringing my own lunch and I'm actually just too lazy (although I like to call it tired) to cook for one person. I could also cut back on the amount of money I spend socialising, but I'm not going to. I stay in often enough as it is, and catching up with friends over a few drinks is just one of the things that I want to do with my money. Food. I think I could save money on food, but I too have accepted failure at bringing my own lunch and I’m actually just too lazy (although I like to call it tired) to cook for one person.

I could also cut back on the amount of money I spend socialising, but I’m not going to. I stay in often enough as it is, and catching up with friends over a few drinks is just one of the things that I want to do with my money.

]]> By: Twiggers http://www.consumerismcommentary.com/2008/08/14/can-you-eliminate-500-of-your-expenses-each-month/#comment-173796 Twiggers Thu, 14 Aug 2008 11:09:31 +0000 http://www.consumerismcommentary.com/?p=3670#comment-173796 Well, I've done all of these things in the past 8 months. I could, however, probably save money on phone service....but I live with roommates and we split the bill anyways, so changes would be minimal. Well, I’ve done all of these things in the past 8 months. I could, however, probably save money on phone service….but I live with roommates and we split the bill anyways, so changes would be minimal.

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