Where does it all go?

We've all been there. You think you're spending wisely, you're not making any major purchases, you're paying your bills and your paycheck should last...but at the end of the week, there just doesn't seem to be as much in the account as there should be. You may even experience a brief moment of panic as you look at your balance. As you stand there in the parking lot, heart fluttering as you look at the receipt, the question on your mind is the same as many others.

What the hell happened?

As someone who has experienced both upward and downward financial mobility, I have noticed some habits that quietly eat up money fast and often go unnoticed. These habits seem harmless, but just like a diet, the little splurges add up over time to yield big results. I call these...

MONEY MUNCHERS!:

Fast food
I know it calls to you after a hard day at work. It seems so much easier than cooking dinner, and really, the kids won't mind! You don't even have to get out of the car-- just a quick trip through the drive-through and you're home free. They'll be satisfied, you won't have to cook, and there will be no fights over who eats what vegetables.

The reality is that it isn't worth it. The average fast food dinner costs about five bucks per person. Let a family of four do that once a week, and we're talking $1,040.00 over the course of the year. What would YOU give to have that money lying around at Christmas time? And the average American eats this junk way more than once a week. Look at your habits, and do the math.

"But Liz," you argue, "If I cut my fast food consumption, won't my grocery bills just be higher?"

Not likely. Americans generate over 30 million TONS of food waste each year. That's an average of $1,200 per family. With a little foresight and realistic planning, you can cut waste from both ends. And that's to say nothing of the health and nutrition benefits, and the advantages your kids get by having family meals.



Specialty Coffee
As an admitted coffee addict, this is a touchy topic for me. There is just something so much more satisfying about a dark and spicy mocha than my morning cup of joe. That said, even I can't justify the expense when faced with the cold, hard truth. My four dollar lattes, when consumed each work day, add up to a whopping $1,000.00 every year. Though I can't stand to cut them altogether, drinking my coffees just once a week ($208 annually) was much easier on my bank account.

Take-out
I know packing a lunch can seem burdensome during a hectic morning, but it's totally worth it. A five dollar take out meal (a steal by any standards) each workday can run you $1,250.00 a year. Better to wake up a little earlier and make time to pack a quick lunch sack.

Cigarettes
It's hard to say no to an addiction, but your wallet and your lungs will thank you. At three and a half dollars a pack, a pack a day smoker spends almost $25 a week. That's $1,277.50 annually for the cigarettes alone, to say nothing of the potential health care costs accrued over time. Even cutting back a little will save a lot of money.

Alcohol
Please understand, I'm not talking about the occasional glass of beer or wine at home. I'm no puritan, and I enjoy a glass of wine with dinner like anyone else. That said, going out clubbing regularly will leave you with more than a headache. Those cover charges and overpriced drinks add up quickly, not to mention the potential for costly unwise choices and missed work hours due to the brown-bottle flu. If you spend fifty dollars a week (a kind estimate for the regulars), that's $2,600.00 per year in bar tab alone.

Still not convinced? I can book two weeks in the Bahamas in January, starting at $1,579 per person. We are talking direct flight from Detroit to St. Thomas, staying at a three-star resort.

Tell me again that you can't find something better to do with that money, sugar.

$3 or Less
I've done it, and I know you've done it too. You go about your shopping, spying an item that you want, that maybe you don't need, and maybe you go ahead and get it. After all, it's less than three bucks, right? You can totally afford that. But when you get to the register, you may suffer a little sticker shock. All those little $3 purchases and "great deals" added up to higher than you expected.

Now imagine what that does to your budget in the long haul! My grandmother used to say something that applies here: "If you weren't about to buy it anyway, it isn't really a deal."

If that ain't the truth...



If parting with any of these habits seems overwhelming, remember that you don't have to part with them wholesale. Just like my coffee, simply cutting back is sometimes enough. It's all about choices, and deciding what matters most to you. If you can't live without going out dancing every night, that's fine. That's all you. Me? I'd rather be in the Bahamas.