Expenses, part 3

Does $1,000 seem like a lot to you? It does to me. But how about $83 - not too much? How about $19.20 - easy? $2.74 - nothing?

Saving $1,000 (much less, $10,000), especially in times like these, seems daunting. But that's only $83 a month, $19.20 a week, or $2.74 a day. Thought of in those terms, it doesn't seem so out of the question. In fact, most people treat themselves to extra expenses every day without giving it a second thought. People often behave as if small costs never add up. But, of course, they do - and quickly.

To overcome this perception, I like to think of things in $1000-per-year pieces. Add them up as they apply to your family. Include others that I may have forgotten or are more unique to your family. You may be surprised at the results.

In no particular order, here are several that I have come up with to save $1,000/yr;

• No cell phone contract; $1,000/yr
• No cable television service; $1,000/yr
• No alcohol consumption; $1,000/yr
• No coffee consumption; $1,000/yr
• No pack-a-day Cigarette habit; $2,000/yr
• Eating fewer or cheaper meats; $1,000/yr
• Buying discount groceries; $2,000/yr
• Eating out or ordering in less; $2,000/yr
• Car repair vs monthly payment; $2,000/yr
• Driving a fuel-efficient car; $1,000/yr
• Driving less distance; $1,000/yr
• Lower utility bills; $1,000/yr
• Library books & movies vs buying; $1,000/yr
• Forgetable vacation; $2000

Of course, not all of these apply to everyone equally. Even if they do apply to you, it may not be reasonable to cut them out of your life. The point, however, is that most people have relatively small expenses in their lives that, over time, add up to a lot. If you really wanted to save your money for something special - something memorable - instead of watching it leak away almost unnoticed, there is a good chance that you can.

For families with school-age children, another phenomenon often occurs; the pressure to fill each child's summer with endless (and costly) activities. We do this both to keep them busy and in a vague hope that their lives will be enriched. But how much do they get out of T-ball, soccer, or yet another day camp? Will they remember it ten years later? These costs add up. There is also pressure to take a vacation of some sort, somewhere, simply because that is one of those family obligations we all feel. If you have a place you really want to go, fantastic. But what if you don't, or have been there already and don't want to return so soon? Consider what you might expect to spend on a shorter, domestic family vacation and summer activities for the children. If you applied that amount to a foreign trip, it would ease the cost considerably. Then see how many items from that list of $1,000 expenses above, you can do without, and you may be surprised at how close you can come to taking the family trip of a lifetime to a place you will never forget.

It can be done!...