The Power of $5

You may not realize it, but $5 a day is flying from your pocket and into oblivion. You may think you are doing the right things to save, but there are many ways you could be doing better. And recognizing that $5 is the first start.

First off, this is definitely not a Ramit Sethi-type teaching by any means. This is focusing on the smaller aspects of spending we don’t recognize. Many other financial “guru’s” and bloggers have noted the effect of limiting latte’s and general eating out practices. However, there aren’t as many “guru’s” screaming about the money being wasted in the household nor the ways to grow a small savings through changes such habits in the home. The benefits to a Sethi-type are obvious. The more you knock out big chunks of big bills, the faster you save a lot. That is great and I am all for those practices, but they are usually limited to being performed rarely. Whereas, the actions I will express are lifestyle changes that can save just as much or more in the long run.

You will have to be willing to change your lifestyle. You have to commit to changing habitual actions that are costing you money. This can be easier said than done. Just look at the tremendous amount of failure on diet’s. What I suggest is that you confront a few habits at a time, then move forward once you have become accustomed to your first habitual changes. In other words, start with a few changes and build from there as you become comfortable with the first changes.

The following is a list of ways many people waste about $5 a day in total at home:

• Temperature: Does your house need to be at 68 degrees? Could you live with 72 degrees? I could and I could at around 78 degrees even with it being hot. Most people are still comfortable at 75 degrees and by changing the thermostat 5 degrees warmer, you can save a lot of money in the long run.
• Food: How much do you let spoil? If you bought 3 days worth of fresh veggies and fruit and focused on consuming them over 3 days, you could eat healthy and not waste. Same goes for leftovers. If you cook a big lasagna, force yourself to eat it over the next few days. If you don’t want to eat it for 3 days straight, then realize that prior to cooking it and cook a much smaller portion.
• Electricity: This is a bad habit of mine. I leave my computer on all the time. I have tried to force myself to close it up and it hasn’t been too tough. By not turning electronics off, you waste a large amount of energy which will add up in the long run. Same goes for lights and televisions.
• Paper Products: Purchasing paper goods for dinner plates and napkins is not eco-friendly and is a big waste. Stop being lazy and use the dinner plates you bought and use cloth napkins. Sure you may have to do one extra load every 2 weeks for those cloth napkins, but how much did you spend on paper, plates, plastic utensils, and paper napkins over a two week period of time.
• Washer and Dryer: Try to combine as many clothes as allowed in your washer. Don’t wash two items. Do a full load or wait until you can do a full load. If possible, air dry as much of your clothes as possible. Unfortunately, I live in a condo so doing so isn’t always possible, but if you do have the opportunity to do so, then at least try and air dry towels and non-worn but washed materials.

These are just a few of the ways you can save $5 over a days time. Sure, it may not look like this makes any sense, but if you total the amounts saved each day and averaged that over a month’s time, I have and could see you saving $150 a month minimum.

The true Power of $5 comes when you put that $5 to good use. At times, I try to put $5 cash (cash being the important part) in a hiding place everyday. Sure, it is a hassle at times and sometimes you forget, but if you keep with this pattern, that small amount of money becomes $150 a month or $1800 a year or $9000 over a 5 year period. Save that money for an emergency and when an emergency comes it will not be as painful to dish at a lot of money and not go into debt to fix it.

I thoroughly believe in the Power of $5. A major focus on it came from the work David Bach has done in concerns to the ‘Latte Factor’. Hopefully, this will help you change some of you ways to gaining a financially stable future without leaving the home.
Do you have or know of the best way to save $5 a day? Click here to leave your thoughts and comments.
Have a good one!!!

Dave
LifeExcursion

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