“Why do you feel the need to spend ALL your money?”

Jeffrey Miller
Sunmark FCU

Written by Inglenook Realty, Inc. guest blog contributor Jeffrey Miller.  

Jeff Miller has been in the Mortgage and Home Budgeting business for over 20 years.  Currently,  Jeff Miller is the AVP of Mortgage at Sunmark FCU and is the host of “The Sunmark Radio Show” airing on 94.7FM.

Jeff is a lifelong resident of Saratoga and lives with his wife Nicole and 2 daughters, Tessa & Ava.  He can be reached at 518-588-3025

 

“Why do you feel the need to spend ALL your money?”

 

I heard the term “Retail Therapy” a few years ago and thought it was funny….Now, I find it scary.

Many Americans have NO money saved for Retirement, has NO Emergency Fund, and basically lives paycheck to paycheck…..BUT…..they also have fancy watches, new cars, multiple IPads, and eats in out in Restaurants 4 or 5 times per week.

I once read that the average American women own 5 Handbags!  Yes, 5 Handbags.  Men, don’t get to comfortable…the average Man spends $3,000 per year playing Golf!

 

So, this is proof that we as Americans have plenty of money; we just spend it on the wrong items.

We spend because were conditioned to spend.  Think about it….Our entire economy is based on Consumer Spending!

Consumer Confidence Ratings, The Stock Market, The Amount we spend at Christmas, and our GDP rates are ONLY based on the amount people spend.

Shouldn’t we look at the strength of an economy based on how much people have saved????

 

What if I told you that simply by cutting out your Morning Starbucks coffee and instead save that money, you would have almost $200,000….would you do it?

(The average Starbucks order is $7.00 for 5 days per week = $35 weekly by 52 weeks = $1820 @5% interest rate = $185,000 over a 30 year working life)

 

Now, I know some of you might be saying “$185,000 isn’t a lot over a life time, but think about it….do you have a coffee maker at your house?  Isn’t it just as easy to make a large To Go cup at your house?

$185,000 is the difference between your kids going to Community College or a Private School….it’s the difference between giving your grandkids a nest egg for their future or not…..and it’s just coffee.

What is more important?  Coffee or your Kids & Grandkids?

Let’s take it 1 step further….Cutting out Starbucks just saved you $185,000….how about if we also bring our Lunch to work a few more times a week.  DO you think that will add up fast?

Chipotle reported that in 2016 the average Lunch order was $11.20 per person!  Using the same formula as we did for the coffee, that will equal just under $300,000 over a 30 year time period.

Total = A Half Million Dollars and we’ve only scratched the surface.

 

How much food do you throw away each year?

How much money do you spend on junk that is just sitting in your house?

How much do you think you could save by being A LITTLE more aware of our money?

 

5 step Action Plan

  • Stop buying Coffee and Lunch for 30 days and watch how it adds up!
  • Have a Family meeting and explain that, as a group, We all need to be more aware of spending
  • Have a Garage Sale to get rid of the stuff you’re not using. Craigslist and Facebook Garage Sale sites are an easy way to sell items and make cash.
  • Create a Family Budget and hang it on the Fridge for all to see
  • Pay yourself first. Save at least 20% of each paycheck and budget yourself to live on the rest

 

For more tips like these please contact Jeff Miller at 518-588-3025