Estimated Monthly Savings: $375
Everyone knows that they have certain extravagances which are unnecessary. Here are some possible questions you might need to ask yourself:
- Do you really have to make three trips to Starbucks in one day?
- Do you need yet another black dress?
- Should you keep ordering out every day?
These are all things that are good for you once in a while. But if you take them to excess, they can really interfere with saving up money for your small business.
Coffee, Clothes, and Food
Think about it. A cup of coffee at Starbucks can cost anywhere from $3 to $5. Three times a day, that can add up to $15. And 25 days a month, that comes to $375, which could go towards your long-term goals
The idea is not to deprive yourself of those frothy cappuccinos or lattes completely. Instead, go one a day. Enjoy that cappuccino completely. And save the rest of your money. Similarly, buying clothes once a month or twice is reasonable. But not every few days. Eating pizza every day is bad for your waistline, your health, and your purse.
If you manage to save money on clothes and food as well as coffee, you’re quite likely to save about $700 a month or more.
Minimalism vs. “The Golden Mean”
Make a list of your extravagances but don’t attempt to cut them out completely. This will leave you longing for them which is a recipe for disaster as it can lead to binging.
Economizing is never about complete minimalism. It’s about finding what Aristotle calls “the golden mean.” Aristotle believed that in all actions, a human being should practice moderation. And this applies to spending money too.
So the next time you see something in a display window and fall in love with it, ask yourself how much pleasure it’s really going to bring you. Is it a sensible purchase? Do you need it? Does it fit into your budget? If not, then save your money and use it to achieve your long-term goals instead.