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Think you cannot reduce your spending?

Monday, July 15, 2013

I am always blogging about how we can reduce our expenses. A dollar saved is a dollar earned, isn't it? 

Well, sometimes people say it is difficult or even impossible to reduce expenses. Is it really difficult or is it too difficult to try?

Michelle Morton, age 43, is married and a mother of three. She took up a challenge to cut her spending and here is her story:

She started logging all her expenses on a daily basis. 

"It’s $4 here, $10 here and it doesn’t seem like that much but then when you go to put the receipts in it’s like Oh my God!"

“Really what needs to happen is to say ‘This is what we’re going to spend on groceries this week’ and when it’s gone, it’s gone,” she says. 

“And ‘This is what we’re going to have to spend on eating out,’ the same kind of thing. I have to stop telling myself that although we really won’t save any money this month we’ll make it up next month because that never happens.”

If you are in your 20s and if you have an active social life, well, you might want to learn from Meieli Sawyer who said:

I understand being thrifty, but you walk a fine line, and you don't want people to talk about you and say you're cheap,” Meieli says. 

“So I’m just going to try to say, ‘Look, things are tight for me right now.’ I’m going to try and not be embarrassed about it.”

Read the full article: here.

Stop putting it off. Take up the challenge today.

Related posts:
1. How to tell if you are rich?
2. The very first step to becoming richer.
3. Retiring a millionaire is not a dream.
4. A fast track to wealth building.
5. Financial freedom.


Unknown said...

Further reduce your necessary spending with rebates from CC :) Takes a bit of effort to find the right cards though.

AK71 said...

Hi Cen,

Yes, if we need to spend some money, why not save some in the process? :)

SGYI said...

People spend money because its already a habit. On the other hand, people save money also because its a habit. We need to see which habit we have. :)
We can decide which habit we want to live our lives on. Maybe that's why rich people are still frugal because good habits follow us all the way?

AK71 said...

Hi SG Young Investment,

Compulsive spending? Yes, that is a mental disorder.

Excessive frugality? Er, that is also a mental disorder.

So, another way to look at this is "which mental disorder do we prefer"? ;)

SnOOpy168 said...

"Follows the Jones" theory . Do you need to have the latest (whatever gadget)or that iPhone 5 upgrade ? Or that Starbucks coffee to-go when kopitain 打包 will do ?

Sometimes, i feel better loose / no face than no $ in the pocket.

SGYI said...

Haha, we should strive to be balance. Then we'll be normal. Do we need to spend money to be happy? I think we can be happy even with a simple life. Money may not bring happiness but it brings freedom.

AK71 said...

Hi SnOOpy168,

Why show off when there is no show left in our bank accounts? LOL! :D

AK71 said...

Hi SG Young Investment,

Striving sounds very strenuous. :(

Money brings freedom and freedom brings happiness, no? ;)

Unknown said...

Hi AK & SG Young Investment,

When frugality is a habit, and that frugality creates freedom, and the freedom gives you happiness, I think its a win-win-win situation!

AK71 said...

Hi Matthew,

Win-Win-Win! Jackpot!

Of course, having said this, people are all made differently. Not everyone will be happy being frugal. I know this for a fact!

EY said...

Hi AK,

If we liken money management to weight management, we shouldn't be surprised that there are more people who grumble about their weight and live being fat, then those who do something about it, to live healthy and fit. The'fluffy' people (be politically correct to avoid rotten eggs coming my way! :P)will always say slim people are born with good genes and justify with plenty many excuses why it is difficult to maintain a healthy weight.

The question is, do they not know how to lose weight? The answer is plain obvious, ya? :D

The same is true about knowledge in wealth building. People don't know how to be frugal? Nah, just don't want to be!


AK71 said...

Hi Endrene,

It is so much easier to just complain and blame everyone else for everything that is bad in my life! ;p

SGYI said...

Hi AK and Matthew Seah,

Well, while people spend money to be happy, i live frugally and i'm happy. haha

Enjoying the journey towards financial freedom plus achieving financial freedom. It is indeed a win win situation.

Recruit Ong said...

Logging your daily expenses is a very good habit. I have been doing that ever since i left uni!

AK71 said...

Hi Ong,

I am dropping Recruit from your nickname since I think you must have been promoted many times by now. If not, you definitely deserve one for keeping track of your expenses since leaving the university! ;)

Anonymous said...

Lucky government is giving us the GST rebates vouchers. Saving that is the first step for all Singaporeans!

AK71 said...

Hi Vanson,

I hear people talking about these vouchers but I don't think I got any. :(

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