Calculate How Much Little Indulgences Cost You
Little indulgences are nice, but how much do little indulgences cost in the long run. A coffee before work, going out to lunch a few times a week, a restaurant visit a couple of times a week. Even more organized indulgences such as a cable subscription or a magazine? If you would take all your weekly coffee purchases and instead invest the money in a fund, how much money would that be after say 10 years? Use the calculator below to find out.
Indulgences Time Cost Calculator
If you are thinking about saving, one good way to look at cutting these little habits is asking yourself how much time it adds until you will achieve your financial goal, whatever that may be. For me, I think a lot about how to shorten the amount of time until we can become financially independent. I would like to become independent before our son reaches school age because at that time we will be much more restricted in where and when we can go and explore the world.
Let’s find out how much your little habit from the example above costs in terms of time:
Methods for Cuttings Little Expenditures
Another good way to cut spending and getting rid of some of these little habits is to come up with a substitute. Maybe you don’t need to go and buy a coffee, maybe you can make it yourself. Perhaps instead of having cable you can cut that entirely and focus on learning a skill instead using the numerous free videos there are online. I employ this tactic a lot in my life, not just because I like to save money but also because gaining skills and leveling up in life is important to me.
Some other ways to cut spending is to focus on spending that is damaging to you. Do you buy too much alcohol? It’s easy to justify cutting some of that. Do you eat too many sweets? Cut. Do you watch too much TV? Cut the channel subscriptions or even the TV itself and spend the time with family or friends instead. Find yourself taking a taxi too often? Consider bicycling or planning better. The list goes on. You can reinforce the spending cut by justifying it with supporting arguments such as health and time spent with family or on hobbies you love.
Above all else I think the most important thing you can do to start saving money is to sit down and actually come up with a financial goal and a way to reach it (also known as a “plan”). Check out our post on how we calculated our own financial end goal. It puts you in the mind set of having a project, a really valuable project. What could be more important than to spend as much time as you can on your family, hobbies you enjoy, traveling and generally enjoying life having reached financial independence? I myself absolutely love my work, but I do one kind of thing at work for 8 hours straight. I have so many other hobbies I would just love to dedicate more time to, but I can’t right now because more than half of my waking time goes towards work.