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Savings are a Every Day Habit!

Investments and building wealth often come with the misconception of the function of our income. In reality, it is much more a function of our spending habits.

But most people are simply unaware of how much money they spend—not so much in the large purchases, but in the small things, we spend money on every day. It is in the small things that the finances can lead to stability issues,

One of the famous financial authors, David Bach, assigns a memorable phrase to this phenomenon.

Further, he describes the small amounts we spend here. The man says this with one fact, it comes from the notion that if we added up the cost of our daily lattes, then, we could build up wealth significantly.

Further eludes the challenges are to keep a constant track on these expenses will be tedious but the benefits increase over time.

Guaranteeing that those who complete the challenge will be surprised to discover where their money has been disappearing to.

He has used this tracking experiment with hundreds of people several socio-economic backgrounds.

Read More: Prioritising your needs on the income? – Here is the Money Mantra!

Let’s plunge into the real money leaks one could witness, find them below:

Dining out.

It is the case with many families across the globe that dining out per week and in turn, a month and then an average yearly cost could spare us a ton.

At first glance, this may sound high—surely, we don’t spend as much as the average but we could surely cut down the cost.

But we tend to disregard how quickly it adds up:

  • Pizza takeout on the way home,
  • A weekend date,
  • Or a night out with friends.
  • Quick lunches at the office cafeteria, business lunches with associates,
  • Little snacks from the vending machine,
  • A bag of chips before we hop on the train,

We never make all these purchases on the same day, but over the course of 30 days, they definitely begin to add up.

Read More: Fast Money! Fast Savings


A lot can happen over coffee, even if it means overdoing a lot of coffee dates just because it gets us more productive. There is no question that coffee plays an important role in workplaces across.

But rarely do we realize how much money we actually spend on it. The average person spends almost Rs.15/- a week on coffee or Rs.1,100/- annually.

This may seem like a significant amount of money to some or not much to others. But either way, it is money that could be directed toward paying down credit card debt, a student loan, or a burdensome car payment.

Read More: 6 Ways to Make Money While You Sleep!

Books and magazines.

Reading is important. I encourage people to do more of it. But if you are a prolific (or even regular) reader, you may not realize how much of your money is being spent on books and magazines. Book purchases are often small in nature, but if consistent, they add up.

Frequently, readers who complete this tracking exercise are surprised how much of their income is spent there.

We are fortunate to live in a country where almost all communities have their own public libraries. Why not use them as much as possible? Another solution is to find a group of friends or family who regularly exchange and borrow books with one another.

Unused utility services.

Paying our utility bills blindly often leads to overpaying for services.

Are we making use of the services such as the cable, call 3-way calling or the call-forwarding options on your home phone?

Taking a few minutes to review the bills and asking ourselves if we really need these services could save us a lot more. And all this every month.

All it needs is a call that will give the user a lot more information on the services.

Read More: The Key to Money Management!

Extra banking fees.

When we don’t take the time to review our monthly bank statements, we often fall into the trap of blindly paying banking fees we could easily avoid—especially if you swipe your debit card more than your plan covers.

Overdraft fees are another way your bank account gets hit or withdrawing cash from an ATM that is not associated with your bank.

You can quickly rack up $20 or more of additional fees each month if your banking plan is not the right fit, or if you consistently avoid walking one more block to withdraw money from your own bank’s ATM. Take the time to review your bank statement each month looking for inconsistencies. When you do, make a special note of Bank Charge line items.


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