I’ve recently run into situations where someone makes good money, has the right accounts, and even a stellar portfolio, but their situation is not getting any better each year or even every two years. Why? Most of the time the culprit is daily spending. We all know that going out to lunch is probably a lot more fun than sitting around the break room eating a microwave lunch but a microwave lunch can be as little as $2 each while going out can easily break $10, even if all you are getting is a salad and a drink. 

Easy trade offs if you feel like (or realize) you are overspending: 

1. Stop going out to lunch. If you have to, eat your lunch in the break room then go for a walk outside the office. You’ll get some sunlight and a smidge of exercise along the way. Another alternative is to pick one day a week to treat yourself to lunch out, you’ve earned it.  

2. Buy a bad-ass coffee machine, but only if you are going to use it. Do you like your flat while or other specialty coffee drink? I’m with you, and it always tastes better when someone else makes it. I bought a ninja coffee maker with foamer and then continued to make daily trips to the coffee shop, complete fail as the machine was over $100. Once I started making it at home (at least for my first two cups) my bank balance noticed. I got better at making the drinks and eventually I got so close to the coffee house taste it didn’t matter. 

3. Make a grocery list and don’t go grocery shopping while hungry: My wife and I usually spend about $100 per week on groceries for the two of us. I remember one time we went in the late evening and had not eaten anything almost all day....oh, and we didn’t make a list either. We tried every sample in the store and our bill was $150! We clearly guessed at what we needed and came up with what we would eat that week on the fly, guessing at ingredients and quantities. To boot, we got home and discovered we forgot some items needed to make meals we thought we already had.  

4. Podcasts: instead of subscribing to multiple news outlets, see if they have a podcast with coverage you are looking for. Some of my favorites are WSJ “Your Money Briefing”, NY Times “The Daily” and The Guardian “Long Reads”. 

I usually tell people to pair these new habits with YNAB, Mint, or your financial planner might have software to help you. My goal is to make people feel empowered and in control when they buy instead of having instant and intense buyer’s remorse. 

I have personally been able to put more money in my bank accounts and fund another domestic trip in two years simply by being intentional with my spending and I always want to help my clients do the same.