by Adam Dawson
Something I’m realizing as we blog about our debt journey on this site is that financial improvements, at least in our house, tend to come in the form of small changes that add up over time. I used to think that our financial issues would be solved if we could just force ourselves to sit down and create a budget that “works,” using some nifty software, and deciding together that we needed to cut X,Y, and Z expense, and we’d just make all the changes and use the envelopes method, and then we’d be on the straight and narrow.
Maybe that works for your family, but we’ve repeatedly fallen on our fiscal faces trying these methods. I’ve found that, when it comes to the daily grind of budgeting and managing the inflow and outflow, it’s a series of small changes that really makes the difference in saving money. For instance, taking breakfast out of the equation because of the office snacks. Searching out a good deal on a mobile phone. Renting out a room for a couple months, and buying work clothes at Costco instead of a department store.
With the new year, we have a few changes that I believe will be a net positive on our budget. I now pay for my mobile phone but the new cheaper plans from AT&T are saving me about $20/month. $70 of my phone expense is reimbursed by the company. We have an increase in expenses for the new year gym membership, but hopefully it will mostly be offset by savings from dietary changes we’re making (I’m trying to give up my diet coke habit, for example). Eating out less and ordering water to drink will cut our restaurant bill. Finally, I believe Emily is going to try Paul Mitchell School for her next hair cut and color, which should be radically cheaper than retail.
These are just some examples of the small changes we’ve made in the New Year. We owe you a household budget and I am committed to posting and discussing. But for now, we are getting closer and closer to making it work with these little changes that have added up.
I feel you on the Diet Coke addiction . . . this is not really a solution if you just want to stop drinking soda, but I switched to our store’s brand diet soda and at $2.50/12 pk it tastes pretty good. However, I am fully aware that I should just stop drinking soda altogether :S A few months ago I “downgraded” my mobile plan, and it is saving us $300/year, which blew my mindhole.
One of my favorite concepts is the one of “kaizen”, which I read about in a New York Times article a few years ago when they profiled Toyota Corporation. This post reminds me a lot of that — the idea being loosely “small, but continuous improvement” from day to day.
I think that home finance requires being very vigilant in a similar way, which can be difficult. In my case, I view it as being part of the reward: e.g. at some point you can relax little by little and the good financial habits will be so engrained that you’ll gain the additional time without losing the gains you made.
yes! i learned about kaizen in b-school. continuous improvement. i found it interesting that any employee on the production line has the ability to bring the whole thing to a halt if they see a problem that needs fixing.
I agree with the small changes! We have a saying at work: “Think big! Start small. Get there incrementally…” and it works.
Honestly, I don’t think a budget works for everyone. I say this because *I* stink at using a budget!! But, I do try to be mindful of how I am using my money. Cutting down on unnecessary luxuries is a good way to start, especially if they are also unhealthy, such as drinking soda 😉
So, I think taking the approach you’re taking could be the way to go for the two of you.
There are 3 changes that I am doing that will help me save money this year:
1. Eating breakfast at home and brown bagging lunch will save us approximately $100/month or $1,200/year.
2. I used to have T-mobile and a Samsung Galaxy S4 and I loved it. It was costing me $125/month. Then I got a corporate iPhone 5s (which I love as well) which my company pays for completely. Now I get to save $1,500/year.
3. I used to hire a landscaping company to take care of our lawn. They charge around $500 at the beginning and the end of the season and $250/month in between. I’ve taken it upon myself to do the maintenance so I can save around $3,500/year minus the cost of purchasing a lawn mower, edger, and blower for this year only.
So with all these changes for 2014, by the end of the year, I am saving $6,200 which can be applied to our debt!
I am not looking forward to yard work though but hopefully it’ll be worth it to help us become debt-free $6,200/year faster!
i agree on breakfast. i’m trying skipping breakfast altogether which saves a bunch of money. you might be surprised if you get a good dinner and cut down on carbs, you don’t really get too hungry for breakfast.
But breakfast is the most important meal of the day!
I think your health is worth more than trying to save a few bucks.
Oh Adam! You are young now so, probably getting a good dinner and skipping breakfast is not affecting you much but, that is not healthy in the long run. As you age, this habit can seriously affect your health. My dietician insists that breakfast is not to be skipped. Dinner should be the lightest meal you get. I remember you talking about some snacks available at work and if I recall correctly, the options sounded on the healthier side. You may want to have your breakfast at work, at your desk. Stay well, stay healthy.
I totally agree! I know you are trying to save money, but the answer is not to just stop eating!!! (That’s kind of dramatic, I know its only 1 meal per day – not like you’ve decided to turn anorexic, but still!) Not okay!
Don’t worry guys. Lots of research supports intermittent fasting and caloric restriction as a way to reduce inflammation, ward off chronic disease and cognitive decline. I’m not starving myself, but thanks for your concern!
http://www.nerdfitness.com/blog/2013/08/06/a-beginners-guide-to-intermittent-fasting/
You have ADHD too if I recall correctly ? Does the lack of eating affect your symptoms? I know it des for me – something about blood sugar regulation is what I read. As a result, I’ve found that eating protein in the morning is very important for me.
TPol, you are in Turkey, correct? Do you know a TV host with the last name Talu?