The below (bakers) dozen expenses long ago would be thought of as lavish (to use my close friend’s favorite word). But nowadays they are commonplace, everyone pays others to do things they either don’t need or they could do themselves for much less.
1 ) Latte – cost 100 times more than a home brewed cup of joe. $5 a day equals $1500 a yr. That’s a lot of money for water ran through beans. There have been entire books written about how you can become a millionaire if you’d just stop going to SBUX.
2 ) Cable TV – $60 a month equals $720 a yr. The average American watches 4 hrs of television a day. Seems like that is a huge waste of life. Just sit on the couch, turn your brain off, and sit there like a bump on a log. You probably get over 80 channels with cable and most of the good programming is on NBC, CBS, ABC, and FOX – and those channels are free. So cut the cable and go mow your grass (see # 8).
3 ) Manicure/Pedicure – Doing them for yourself at home will save $1200 a yr. I have heard that this feels nice and looks better than one can do on their own, but it seems like a large price to pay. And you are doing it for the men in your life and I’d be willing that the men in your life couldn’t tell the difference between a paid for job and a job done by oneself.
4 ) Botox – $600 per visit or $2400 per yr. This is probably not the norm in many small cities, but in larger ones this is one of ‘the things’ to do to feel younger/better about yourself. Seems crazy to me, shallow and superficial. Also, it is temporary so users have to go back often to get shot up. And treatments are expensive.
5 ) Bottled Water – $30 a month or $360 per yr. Bottled water isn’t even as healthy as tap water (many studies have been done confirming this fact, see here for one). And we spend $4B a yr on the stuff. And more than 25% of bottled water marketed as coming from pristine springs around the world (in places like Fiji) as actually only bottled tap water.
6 ) Second Car – payment, insurance, maintenance, license, registration, gas, insurance could run you $5000 a yr. There is most likely no need for this. If you have a 15 yr old involved in all kinds of after school activities and is about to turn 16 and this car is going to be for him, than maybe you need a 2nd car. Or if it is a paid off truck, costs less than $100 a yr to insure/fuel/maintain, and is used semi-regularly haul stuff in then maybe. But otherwise, this is a huge money sink that you should dump.
7 ) Cell Phone – you could save $50 a month or $600 a yr by decreasing your plan, your minutes or your texts. And most providers offer discounts for government employees or employees of large companies. Call your provider and inquire about this. Verizon’s website is www.verizonwireless.com/getdiscount. And please consider paying for your 10 yr old to have a cell phone. I survived until the age of 27 without a cell phone and turned out quite normal.
8 ) Lawn Service – $250 a month or $1000 a yr and will be much more healthy by doing so. Mowing your lawn is a very healthy undertaking. You can skip gym workouts if you start mowing your lawn and you’ll be in better shape because of it. And you’ll be proud of yourself for a job well done.
9 ) Clothes – Most of us could probably go a yr without buying new clothes. How often do we truly ‘wear something out’? This could save $75 a month or $850 a yr. Many people, mainly women, go nuts spending on clothes. I just had a friend tell me she spent $250 on a pair sunglasses. That is craziness if you ask me.
10 ) Private School – This could cost between $8,000 and $15,000 a yr (more than many good universities charge for tuition. And in the majority of the country, public schools do a good job of educating children. To a large degree, kids get out of school what they put into it. And their parents deserve a large amount of credit/responsibility for their children’s education. I don’t know if that is a job you can outsource?
11 ) Childhood Parties – $1000 per birthday or per yr. In many cities, keeping up with the Joneses means inviting the parents of your child’s friends, having a full meal, having a bouncy house, clown, etc. And it occurs every yr, not just special occasions. And if you have multiple kids, you could spend more on birthday parties than you would saving for your child’s college education. I say forego the birthday parties, and send them to college.
12 ) Pet Grooming/Walking – Grooming costs $50 a month and walking costs $50 a week. You do this yourself and you’ll be healthier and save $1200 a yr. Seriously, buy a $25 pair of clippers at Walmart and cut your dogs hair every month. In the time you could take your dog to the groomers and pick him up, you could have the dog trimmed. And after the first couple times, it’ll probably turn into a 15 min job. And as far as paying someone else to walk your dog – that is crazy. A walk is very healthy for you, and not only physically, but mentally too. It gives you a chance to clear your mind, relax have some peace and quiet which is difficult to find nowadays.
13 ) Video Gaming – could cost $100 a month or $1000 a yr. Games cost $50 and consoles cost $400 or so. With those prices it doesn’t take long to spend a grand. And you would be surprised at the amount of grown up men/women who are ‘gamers’ and blow off time with their families to ‘game.’ I played Super Mario Bros when I was in elementary school, but that was when I was 10 yrs old, not 30 yrs old with a wife and kids. There are even businesses which charge a fee for gamers to come into and game – you come in rent a station with a high power PC and internet connection and play World of Warcraft.
The above expenses could be costing you $30,000 a yr. That is an obscene amount of money. Consider what is truly a necessity to you. And you could save money and be just as well off if not better off (some of the things on the list increase fitness and pride levels). Think about it.
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I’d just like to comment on the “I survived until the age of 27 without a cell phone and turned out quite normal.” Really? Normal? The fact that you have to write this article means you’re not quite like everyone else! Oh, and I’m also offended by your $250 pair of sunglasses comment! I bought a pair of Maui Jim’s and it has changed my life…what a great investment. A real man would have a pair of Maui Jim’s.
Good calls, except for the cable TV. Writing for shows that air on cable pay my bills so as far as I’m concerned, nobody is a true American unless they own the most elaborate cable package available.
But yeah, lattes? Total bullshit.
Is Telemundo cable TV or broadcast?
Telemundo is a broadcast network owned by NBC, whose parent company is General Electric! The LA affiliate is located in the same newsroom as KNBC Channel 4 news. Both are located on the Burbank lot, upstairs from where the Tonight Show tapes.
I would like to add that doing manicures and pedicures by oneself is not always the most economical! Have you ever tried applying wet gooey nail polish evenly to all 20 nails? Not the easiest task and might I also stress that it can pose a risk to your health, furniture, and even pets or small children. Cutting back on elaborate nail designs will lessen the expense. Plus, long gone are the days when pricey acrylic nails were in vogue. There really is no need to spend more than $35-$40 when one decides to indulge in this little luxury. Boy, do I wish that we could go back to a decade ago when a manicure/pedicure was only $15 including tip.
Yes I agree that men could care less if the leading ladies in their lives have nails done by a professional or not. However, as a patron of many nail shops, predominately owned by Asian immigrants establishing a better life for themselves in America, I feel that my bi-monthly patronage gives these small businesses the ability to thrive. A real woman knows that it takes more time, effort, and hassle to complete the job herself than it does to visit a nail shop for 1 hour and eliminate the problems associated with nail polishes, clippers, filing boards, and other smelly solutions that make up a perfect manicure and pedicure.
Extravagant birthday parties for children under the age of 5 are absurd but sadly in certain communities parents feel pressured to compete against each other on the amount of balloons and size of a cake. When I was a proud pet owner and could not get off work during the day to walk my dear dog, my dog walker became a lifesaver. By having someone help release the dog’s bladder in the afternoons, pet owners save money on carpet cleaning and vet bills. A constipated dog can be quite costly. Of course if you can walk the dog yourself than what is the point of hiring someone. For most pet owners who are busy professionals and cannot afford to be home all day, providing the best life for their furry four-legged friends becomes a true necessity. Ironically there are some pathetic pet parents who worry that their dogs or cats will hate them forever if they cannot throw down the dough to pay for “Bark Mitzvahs”!
Cutting back on buying lattes and bottle waters less frequently really saves money. Plus, cooking food at home and eating the leftovers (if there are still fresh) for a few days helps balance the budget. Informative Article!
I’m a big fan of frugality, but also appreciate the power of division of labor. The theory is that we all benefit by doing what we do best, exchanging surplus value with others to attain the things we want. This means society is better off, in aggregate, when we outsource various elements of our lives.
Like Lori says, paying a small business owner to manicure your nails reduces the time and capital input required to do it yourself (buying equipment, acquiring the skills, etc.), allows you to focus free time on other values, and enables the business owner to earn a living by providing a service for which she is likely better trained. It’s really a win-win, as are nearly all mutual dealings in a free economy.
That said, there is value in frugality, but I am a fan of a measured approach. Free time is increasingly rare these days, so giving it up should be carefully evaluated. If it comes down to spending your one free afternoon with your children or changing your oil and mowing the lawn, I’d recommend putting the time into your children. It’d be great if they could do the chores with you (what could be better quality time?), but if they are too young I’d say they rank far higher in the value heirarchy than saving money…hire a yard crew and take the car to a mechanic!
30,000$ per year if you cut back on those things. Imagine, if you only save 1000$ per year, after 9 years, you will grow it into 9,000$ thanks to compound interest. Imagine, not investing, but just put in a saving 30,000$ per year…hello early retirement. Cable -I got free tv and don’t even watch it lot. Lawn-well, I don’t have any lawn to mow even thought that would be a great exercise. Pet- not yet. Pedicure- well, it’s a luxury not in my budget. Cell phone- well, on the cheapest plan, any cheaper would mean I have no cell phone at all. Well, everything is quite swell isn’t it?
I apologize on my last comment, it was supposed to be “after 15 years, it will grow into 9,000$” not 9 years. I apologize for the typo.
@frugalgrad.com – 35 years-darn it, what’s wrong with my typing..! Sorry about that.
Another cost people spend way to much money on is Dry Cleaning
Interesting article but totally incorrect title. “Commonplace” is hardly the same as “necessity”. I.e, botox is NOT a necessity, and therefore that point already makes the title confusing.
Some good points. Disagree with private/ public education. In some parts of the country it would be a handicap to send your child to the public school in the area….I grew up in Georgia. Thank God my parents did not send me to the public schools here. Education does start in the home (I was homeschooled). Of course it is possible for your children to attend a failing public school and still gain a beneficial education. However, in comparison with my contemporaries who attended the elementary public schools in my region, the comparison becomes obvious at the college level. There are always exceptions.
Many people have different expectations for their child’s education. To each his own. However, your child’s education is one of those areas that I would not encourage cutting corners.
Oh and a marvelous book that really captures the ideas represented—-”Your Money or Your Life” by Joe Domingez
@Mandi Harper – Granting government near monopoly on education has dumbed America and led us down the path to ultimate serfdom. We are taught entitlement, blind faith in public leaders, and indoctrinated with the tenets of Socialism, all by subterfuge.
There’s no conspiracy, but, rather, myriad examples of bureaucratic ineptitude and the long-term consequences of removing a vital service from the private sector to the public. There are no incentives to improve, with public education facing slow deterioration in the hands of turf-protecting teachers’ unions.
I cannot fathom how something so important as educating children can be relegated to the hands of bureaucrats! what have they ever proven they can manage efficiently?
@Rob Viglione – Absolutely! And now they want healthcare… I think not.