Wednesday, February 27, 2008

Mike's Money Minute

Every time I turn on CNN, I am bombarded with the news reports and commentaries on the struggling economy. Constant notions of increased living expenses amidst stagnant salaries and diminishing jobs, it has become readily evident that a new day is upon us. It is time to keep up with the Joneses’, and the Joneses’ are cutting back and saving. USA Today published an interesting article this morning on how normal Americans are already cutting back in their everyday expenses. One such businesswoman indulged in an iced mocha latte from Starbuck’s around 4 times a week. With her cup of joe coming out at $3.46, in a month she was spending roughly $55 per month. When examined from an annual perspective, she was spending about $664 per year on coffee! Well in wake of this recession, said businesswoman is making her coffee at home and adding a squirt of Hershey’s syrup!

Think about your day-to-day spending. You know there is some little luxury that you could go with out. Whether it is bottled water, going out to lunch, or a $.99 bag of candy, this money is adding up and in the grand scheme of things, it is money that can be saved! I challenge you take your efforts a step further. We all have online banking (if you don’t you should!), and at the end of a week of eliminating take-out lunch or other amenities, transfer the funds that you would have spent to you
savings account. For instance, the past two days I have brought my lunch to work instead of going out to lunch and spending anywhere between $10-$20 dollars. On Friday, I will transfer the money I didn’t use to my savings.

Let’s not ignore the nature of our new economic situation. Let’s keep up with the Joneses’. Cut back and see your savings rise.

Check out the USA Today article here.

-Mike

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