Financial Journey
(featured column)

5 Tips to Avoid Spending Money Unnecessarily

by Karen Kuebler 

It is very easy to fall prey to purchases that are well intended, or that we believe will provide value, only to later regret the money spent.  I know, because I’ve done it many times myself, and I consider myself very frugal minded and conscious of unnecessary expenditures.  More...

By giving yourself extra time to consider a purchase, finding creative alternatives, and reevaluating ongoing expenditures on a regular basis, you can add hundreds of dollars to your savings account without feeling the least bit deprived.  

The following are some examples, including a few of my own, where you could be more thoughtful about your spending:

1. Fitness Memberships – If you have a membership and use it regularly, then this is a worthwhile expenditure.  However, if you are paying monthly and not utilizing your membership more than a few times a month (or less) then it is time to consider dropping the membership and turning to good old fashioned walking, hiking, playing Frisbee in the park, video workouts at home, or other forms of exercise that won’t cost you unnecessary fees.
    
2. Magazine subscriptions – It’s tempting to subscribe to your favorite magazines, but if you are like me, you could have stacks you are keeping because you feel guilty dumping them until you’ve read them.  Another snag that has occurred when I’ve subscribed is the trap of continuing the subscription year after year.  Reevaluate which magazines are absolutely a must for you – for example, you might collect recipes from a particular magazine and paying to copy at the library isn’t cost effective.  However, consider visiting the library or book store once or twice a month to get your magazine ‘fix’ or ask your friends to pass their used ones along to you when they are finished.  Our library sells old copies for .10-.50 cents, and sometimes I get them free at garage sales. There are many alternatives available for you to read magazines without the annual expenses attached.
   
   
3. Special T.V. offers – I just fell prey to this one, so I have to include it.  There were two books being advertised for free if I purchased “now!”  They were about health and nutrition and I was extremely interested.  I placed an order through the toll free number and by the time I was finished, the S&H was $9.95 each.  I almost said “no,” then decided that it was still cheaper than buying the books so I proceeded with the order.  The books have been sitting in my magazine basket and I haven’t read them yet.  Be very careful about special offers on television that intrigue you, and avoid impulse purchases.  The next day I would have probably forgotten completely about it, and would have $20 more in my savings!
   
   
4. Impulse purchases at the checkout counter – Make a rule that you won’t purchase anything that is not on your grocery/needs list unless you absolutely need it and forgot to include it on the list.  It is far too easy to start browsing a magazine while waiting in line and toss it in your basket because you didn’t finish an article you were reading.  Sometimes I’ve tossed hand lotion into my basket only to get home and find I have lotion in various drawers and cabinets.  I also succumb to bubble gum from time to time, and my teeth really don’t need that – although it probably makes my dentist happy!
   
   
5. Window shopping and browsing stores – I think this is a past time that should be replaced with alternative activities.  If you don’t have it written on a list, then shopping is probably a hobby, and there are much more cost effective and/or healthier ways to spend your time.  If this is a social activity with a friend, get creative and do something else such as trying a new recipe, going for a walk or hike, playing a game of cards, or working on a sewing project together.  I have a couple of friends that love to sew and we get a double benefit by making gifts for Christmas while sharing an afternoon of visiting and fun.

These are just a few examples, but maybe they will get you thinking about where your weak spots or impulse purchases might occur.  I have a little trick that helps me when I’m faced with the decision to purchase something – if I laid the money and the item on the table, which one would I reach for?  It usually turns out that I would take the money and run!

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Copyright © 2007 by Karen Kuebler. All rights reserved.

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