What’s costing you your retirement?
April 4th, 2006 | by mbhunter |Ran across a couple of posts about regular expenses that can cost you a ton of money in the long run:
- My Money Forest posts on an article he found in the OUDaily about how snacks can eat you (or, at least your retirement!)
- My Money Blog saved $250 on haircuts in one year by having his better half do it!
Both of the expenses are discretionary, but one mgiht say that haircuts are a little less discretionary than snacks. Possibly because it takes some talent to cut hair, and you’re willing to pay someone who has that talent rather than endure a few “near misses” by your “dear Mrs.” Possibly also because it takes time to cut hair, and time isn’t at all free.
Nonetheless, the money goes out of your wallet just as fast with both kinds of expenses, and can work to derail your retirement. Now, supposing that Mrs. Jonathan-of-MyMoneyBlog can cut his hair in 30 minutes, her time is worth $30/hour (since he was paying $15 for a haircut), plus any saved gas in getting to the barber.
That’s not bad at all, plus she’s learned how to cut hair. The real savings are with the “more discretionary” types of expenses, like snacks. Saving money there amounts to breaking a habit, like gourmet coffee or snacks from the vending machine. Even better might be giving up coffee or sugary snacks altogether, for a double benefit of lots of saved money and better health. (Mea culpa with my coffee habit!)
So, there are likely lots of opportunities to save on both fronts — both on the “easy” habits to break and the “harder” ones for which you’ll need to learn a new skill.
I mentioned my caffeine IV drip as an opportunity for saving. What habits, trivial or otherwise, are slowly eating holes in your retirement?
4 Responses to “What’s costing you your retirement?”
By Financial Freedumb on Apr 4, 2006 | Reply
Smoking! Definitely! Almost a month smoke free! Woohoo!
By Tim MMF on Apr 4, 2006 | Reply
Glad you found the article useful. Haircuts at home for men are probably easier than women…but snacks are easy for everyone to cut costs!
By Dus10 on Apr 4, 2006 | Reply
I cut my own hair, and I have done so since I was 13. I used to have simple cuts back then, but I could pretty much go as simple or as complex as I like, these days… (not that my hair is complex, but it isn’t a quick buzz job, either). Also, consider that they probably save time as well, because they do not have to commute to the barber, or wait in line. If I went to the barber, I would spend at least an hour, if not two, on travel, getting the job done, and waiting.
I am considering the cost of each thing I do to save money, and instead of just saving on costs… I think I am going to allocate 50% of the savings to either my retirement funds or my wealth funds.