Customize Your Savings Plan – Part 1

It’s hard to determine what to keep and what to cut when you are trying to save money. Do you keep cable because hey, now you’re unemployed and what better time to have access to your favorite shows than now? Or, do you cut it, and decide to spend the extra money on a Target shopping spree (I am assuming you are a thrifty shopper here).

There is honestly no “right” way to cut your spending. If you ask the money experts, like Suze Orman, they’re always quick to point out that crazy $700 spending habit that many Americans have—our morning cup of Joe. Of course, I can see how a daily latte is a bit of an excess. But, I think the answer to how YOU should cut your spending will vary from household to household.

Take me for example: I know that even when I’m trying to crunch my spending, there are a few things that I just refuse to let go of. I can’t make a good homemade pot of coffee for the life of me. It just never tastes like the stuff I can get at a local coffee shop. I’ve tried to switch to tea and I’ve tried percolators, a French press, but still, my homemade attempts just don’t hit the spot. So, I decided a few years ago that I was always going to buy myself a cup of coffee in the morning. I’d just budget in the $60/month expense because it was a part of my life that I find really enriching. I get to enjoy the nice ambience of being surrounded by people, maybe read a book, and take a moment to savor my morning ritual. And, this ritual keeps me happy and sane, even when money isn’t flowing into my life the way I’d like it to. Spending my morning at a coffee shop makes me feel rich.

Now, I’ll also say that I don’t splurge in other areas of my life. I rarely shop for clothes, and I don’t get manicures and pedicures, and I cook about 95% of my meals at home. So, I can afford that $60 habit. I’ve made myself afford this $60 habit because I’ve put it high on my list of things I value.

I did the same thing with cable. I decided to keep cable in my apartment because I live alone and sometimes, I think I’d go insane without some connection to the outside world! Sometimes after a crazy day, I just want to relax and decompress, and on those occasions, TV just hits the spot.

Saving money is a lot about cleaning the fat out of your life—taking out those things that aren’t serving you in any positive way. I still am on the fence about whether cable is really “serving” me. Just when I think it isn’t, an old episode of “That 70’s show” will come on and totally convince me that I really need TV. ☺ But, I’ll probably have to do a little trial and error to truly know the answer.

In our next segment, I’ll offer a process for you to get started on customizing your own personal saving plan to suit you and your lifestyle.