We're already a month into the new year, so it's a good time to evaluate how it's going. Do you know where all your money went in January? Are you on the path to saving more this year? Chances are, you're not quite sure where all your money went. Much of it went to bills: rent or mortgage payment, utilities, credit cards. Some of it went to car payments and gas, maybe new windshield wipers and headlights (yes!). And, of course, a bunch of it went to food - groceries and eating out. But what about the rest? Were you able to add to your cash stash? Or did your money run out before the month did? If you're like most people, there's room for improvement. Now is a good time to take a closer look at your spending habits. Likely, you'll find money to save that you didn't realize was there. Here are a couple of personal examples: I'm reading (for the second time) The Spender's Guide to Debt Free Living by Anna Newell-Jones. If you want to save more, this book will lead you through a "spending fast" that will help you recognize "needs" versus "wants." It's amazing how many things we buy because we think we NEED them. For example, this weekend I spent $8 on toasted sesame oil for a chicken fried rice recipe that claimed it was "better than take-out!" Committed to cooking at home, I decided it was better to make this dish we were all craving instead of buying from our local Chinese restaurant. So I convinced myself this item was a NEED. The recipe called for just 2 tablespoons of the oil, but I plunked down the $8 for the bottle anyway. The result was adequate but definitely not better than take out, and my kitchen now smells like toasted sesame oil, not to mention that I need to search up more recipes that call for toasted sesame oil before it goes bad. This experience didn't sour me on my commitment to cooking at home - I still feel that's the way to go to save money - but it definitely made me realize something. It's important - even when it comes to recipe ingredients - to think about how I'll use something. Is it worth the money? Was it a NEED or could I have found a different recipe that used ingredients I already had. True, we're talking about just $8. But how many purchases do we make like that? "It's just a dollar" or "it's just $10." It all adds up. Little things add up. Which brings me to my next example, a happier example of how little things add up. In January, I started my 2020 installment of the 52-Week Money Challenge. If you've never heard of this challenge, click here. I've done this challenge several times, with varying degrees of success. I've never completed it - something always comes up that I need the money for - but it's a great way to see how little things add up in a positive way. One year, I was midway through the challenge when my refrigerator gave out, and I was able to use the savings to pay cash for a new one! This year, I'm doing what I call the "popcorn method" of the 52-Week Savings Challenge. I bounce around, crossing off random amounts on the list as I find money to deposit. One week, I checked my grocery receipt, found a mistake and got $3 back on a price correction and deposited that in my jar. Another week, I got a $12 refund check in the mail, which I cashed and deposited in my jar. Now, it's the first week of February, and my jar is filling up. It's not a fortune, but it's a stash of cash that will be there in case of an emergency. It all adds up! It's just one method I'm using to save a little more this year. What are you doing to save more? Tell us about it! Let's be Money Smart, Friends! Best, Nancy
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June 2023
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