How Recording Your Spending Habits Can Help You Save Money

It is easy to spend without thinking, from an afternoon pick me up latte to an impulse splurge buying a magazine at a grocery store. In the moment, these little purchases seem like no big deal – they’re only a couple dollars, right? However, in the long run, they can end up costing a significant chunk of change.

For that reason, it’s important to keep track of your spending habits, both big and small. That way, you can notice trends in your spending, and then figure out ways to cut down costs.

Here’s a few easy steps that you can use to record and learn from your spending habits:

Keep a Journal

Write down everything you spend money on, even if it’s as tiny as some gum. It can be nice to have a small notebook that you can keep in your purse or pocket, so it’s easy to access. Since everyone’s different, there’s not one way to do this. Other options are keeping an updated document on your computer/phone or creating a voice memo. Find what’s best for you; it may even be a mix of things that you compile together later.

When you record information, include what you bought, the price, and the approximate time it was purchased. This data can be extremely helpful.

Keep Track at Least Once a Day

While ideally, it would be a good idea to make a note about spending habits right after you’ve made a purchase, sometimes that’s not possible. In those cases, strive to get everything recorded by at least the end of the day. This gives you a bit of flexibility.

Maintain Your Tracking for A Couple of Weeks

Diligently maintain your recording habits for a couple of weeks. This amount of time gives you a solid idea of your spending habits. No matter what happens, be honest and don’t judge yourself. That’s the only way you can accurately assess where you are – and where your money goes.

Evaluate, Evaluate, Evaluate

Here comes the meat of the process. Once you have a couple weeks’ of information recorded, you can begin to look at it. Try to find trends. For example, is there a time of day where you spend more money? Beyond your needs like rent, where does your discretionary income go toward? Movie theater tickets, eating out, clothing sprees?

It’s important to reflect about what you want. For example, if you prioritize buying new clothes on a regular basis, that’s okay. After all, it is your money.

However, it becomes an issue when, say, money goes toward a daily to-go coffee when you’d rather have a larger purchase down the road, like a fancy electronic device. So, when you look at your spending habits, notice what you can cut out or swap.

Some easy swaps/changes include:

  • Drink free coffee at work instead of buying it.
  • Use Groupons for restaurants or fitness classes you frequent.
  • Cook meals instead of going out.
  • Reduce the frequency of getting your nails/hair done.
  • Take advantage of free events and media materials from the library.

Repeat and Re-Evaluate on a Regular Basis

The thing about spending habits is that they can change. So, every once and awhile, start recording your spending habits again. See what you find, and adjust accordingly. Happy spending (and tracking!).

Don’t Purchase a New Car

Don’t Buy a New Car!

Don't Purchase a New Car

It might make some questionable noises, the tape-deck-era sound system might not be the nicest, and the purple exterior is no longer as cool as it was when your car rolled off the assembly line a decade and a half ago. But here’s why you should hold off on buying a new car, and why you should hold on to the one you have for at least another year:

The Longer You Hold Onto a Car, The Less It Depreciates Each Year

Depreciation is your biggest enemy in the car game. It’s the main reason why buying a used car is always a better idea, and it’s the biggest pitfall for anyone looking to replace their old car.

Car depreciation is at its worst in the first four years of a car’s life. That’s when the value drops dramatically and when your car purchase regret is at its highest. If you buy a used car that’s at least 3 or 4 years old, you should be able to avoid the depreciation landslide (with a little research on the type of car and it’s value).

But as a rule of thumb, the longer you hold onto a car, the less it depreciates with every passing year, making it increasingly cost-effective. While the trade value of a 2003 sedan is much lower than the same model of a 2006 sedan, you’ll have saved money with the 2003 model because the depreciation value is better than the newer version.

The older your car is, the less you have to worry about its value depreciating significantly. “Cars are a rotten investment. The longer you keep them, the better off you’re going to be from a financial perspective,” says Remar Sutton, president of the Consumer Task Force for Automotive Issues.

Fewer Repairs Might Not Actually Save You Money

You’re probably sick of patching your car back together again. Something is always falling apart- the tires need realigned just as soon as you’ve changed the oil and serviced the engine, and your brakes pads need replacing just as soon as you finally fixed the heater.

But unless you’re spending more in repairs than you would on a newer used car, it’s probably not worth the major purchase. Save the newer car for when your transmission is close to going kaput or your engine is almost to the point of no return.

If your monthly auto repairs are far exceeding the estimated monthly car payments (including insurance, registration fees, and keeping in mind things like depreciation) then it might be time for a new car. Otherwise, hold onto the one you have for as long as you can, or until that financial milestone.

The fear of miles on your car is not a particularly valid one. With proper care, a car can go as far as 200,000 without skipping a beat. It all just depends on the model, wear-and-tear, and some luck. But there’s no reason why you should feel the need for a new car just because it has a few thousand miles on the odometer.

Cars that are well-maintained hold their value surprisingly well. And if you have a car that has value, you can always borrow against it if you need cash in an emergency. Check out Title Loans Fresno.

If You Absolutely Have to Buy A New Car . . . Buy It Used

There’s no point in buying a brand new car. You can avoid the depreciation dip, score a better deal, and save a ton of money when you opt for a used car over a new car.

If you must buy a new car, do it right. Buy a new car when your old one finally dies on you, needs a major repair that would be more costly to fix than simply buying a new car, becomes unsafe, or no longer meets your needs. Buy a new car when your new job requires you to travel long distances and you need something more reliable and gas-efficient, or when you have your second kid and your tiny old car isn’t going to cut it anymore.

In other cases, it’s smarter to hold onto your old car for as long as you can before committing to buying a new one. But when that time comes, you should always aim for a good used car.

You’ll find better prices from owners who simply want the car off their hands than a dealer who has thousands of cars to sell and has to make money off of you. Check repo auctions and for-sale-by-owner magazines or online forums.

If you go into a used car lot knowing how much a model is really worth, you’ll have all the power. Use these resources to check out potential cars before you start shopping:

Worry less about trade-in value and looking cool. If you have to buy a newer car, focus on saving more money per month and annually, and dodging that depreciation trap. Finding a car that will last you another decade is a big deal; make sure you do it smart!


Save Money for the Things That Matter, Spend Less on Things That Don’t

Spend less on things that dont matter

Save Money by Spending Less

Savings are talked about a lot, generally in grandiose tones that tell you about big cuts to make and big deposits for accounts that the standard saver might not ever have. That might be why an estimated 76% of Americans are living paycheck to paycheck. After all, if the best advice financial advisers can give you is to get $10,000 in savings as soon as possible, it’s easy to feel overwhelmed.

You don’t have to cut back at all costs to save for the things that matter, though. You can put that savings account to work for you today, with nothing more than your spare dollars and cents. Here’s how.

Save Money by Identifying Comfort Spending

Think of comfort spending like emotional eating, except with money. It’s taking something you need to do – providing resources for yourself – and doing it to the extreme. No matter who you are or what your paycheck looks like, it’s something we all do.

Look at the money you spend on necessities that go beyond what you actually need – look for where spending goes from necessary to just for your comfort. You need food, but do you need to spend money on eating out or having it delivered multiple times a week?

Say you spend $10 on lunch out twice a week. Then check out a lunch wrap that you can make for around $2 a serving. Even with the $4 for two wraps, that’s going to save you $16 a week, which translates into over $800 savings in a year.

Maybe food isn’t where you comfort spend. Maybe it’s on clothing, personal care, toys for your kids, or even cleaning supplies. Maybe you have to have that name brand glass cleaner, regardless of where you live or who shares your home. Assuming that bottle costs around $6, you could save $4 a bottle just by switching to the $2 generic brand. Do that for every cleaning item in your home and you have hundreds saved in a year.

Identifying comfort spending is not about telling to make deep cuts; it’s about making little ones that can add up to big dollars. Your needs will still be taken care of, and you might even find a new product or recipe favorite that you wouldn’t have discovered if you kept comfort spending.

Save Money by Consolidating Your Debts

If you’re reading this and you’ve ever had money to your name, you probably have some debts, too. The average American household has over $15,000 in credit card debt, $33,000 in student loans, and another $150,000+ in mortgage costs.

Consolidating your debt doesn’t mean you’re going to get rid of any of that – not by a long shot. What it does mean is that you’ll be paying a lot less in interest.

Let’s look at credit card debt as an example. The average American has over $7,000 worth of debt spread across three cards. Those cards likely have different balances and different interest rates, and you’re making separate payments on each of them. Consolidating your debt can mean a lower overall monthly payment, and it also means interest is only accruing on one account, so you’re earning less of it overall. The same goes for student loans.

To see how much you could realistically save simply by consolidating your debt, check out this handy online calculator.

Save Money by Busting Out Your Piggy Bank

It might seem like a cliché, but the change jar has stood the test of time for a reason. Especially these days, when coin use in general financial transactions is down, those times when you take cash out inevitably leaves you with nickels and dimes lining your pockets or purse. Don’t just leave them to the dust bunnies, put them to use. Save up your coins and when your vessel – jar, piggy bank, plastic bag, whatever – is full, take them in to deposit.

This doesn’t come with a cut, at all. It’s your money. You already have it. All you have to do is get it back into your bank. Bam! Instant savings.

Save Money by Turning Your Mind Around

Believe it or not, your savings have a lot to do with your state of mind. Specifically, a number of studies including a 2014 journal article from the University of Minnesota have found that those with a childhood background of financial uncertainty are more likely to make impulsive decisions and give up on difficult situations, including in their own finances.

If you think of yourself as someone who “grew up poor” or “who’s always been poor,” you’re perpetuating a mental cycle that tells you your cash is likely to up and leave if you don’t use it while you got it. It’s a very real thought process, but you have to remember that it’s not going anywhere unless you say it is. Just like with anything else in this world, if you’re looking to save, you have to believe that you’re capable.

Spend On What Matters

Don’t save without a reason – you’re going to feel directionless and less motivated to continue if that’s what you do. Figure out what matters to you and don’t be afraid to put your money toward that. Going out to the movies might not seem important, but taking that family vacation might.

Having a car with the newest features might not matter, but having one that’s safe for you and your family should. At the end of the day, your savings are there to be applied toward larger things later. It’s good to have an emergency fund, but keeping all your spare cash tied up for “just in case” isn’t going to motivate you to save. Having goals that enhance your life will.

Just decide what matters, and put your pennies toward that. Soon, they’ll grow into dollars, and you’ll have your goals in hand before you know it.

Make Cheap Healthy Meals and the Savings Can Bring Gourmet Returns

So, here’s some food for thought: Good meals don’t have to cost a fortune. Even if you could afford prime rib three times a week, would you really want to eat it that often? Should you be eating it that often? Of course not. One of the beautiful aspects of cheap healthy meals is the variety and creativity that goes into them.

Another idea to consider is this: Good meals and bad habits cannot coexist. So, in order to make room for cheap healthy meals, get rid of these easy traps:

  • Drive-throughs on your way to work
  • Carry out on the way home
  • Prepared meals in specialty stores
  • Late night delivery

Sure there might be healthy options, but they won’t save you any money. Feeding a family of four at a well-known fast food restaurant runs close to $20 (not including dessert). For that money, you could make a healthy baked pasta primavera, salad, bread, dessert. Or, homemade chicken tacos, rice, beans, chips, and dessert.

If you like to treat your family to “fun” meals, make them at home. Burgers, chicken strips, and pizza – they’re all doable and will be far more enjoyable. A large delivered pizza (16-inch) can also run about $20 – even more with delivery. You could make close to three large pizzas for that price.

Making Cheap Healthy Meals is a Family Project

For grade-school kids with reading skills, delegate the coupon hunting to them. Older kids can help with menu planning (even researching ideas) as well as cooking and cleaning.

But these family meals also have a goal: To save money for a really great payoff. So, what would you like to save for? Here are a few suggestions:

  • A weekend at a waterpark
  • A family room makeover
  • A family-friendly cooking class
  • A wardrobe update for the family

Saving money for something rewarding also reinforces good savings habits. And the whole dinner table conversation shifts about healthy food, new recipes, and what to look forward to.

How to Create Better Family Meals

Every successful savings plan starts with a budget. So do the same with your grocery list. Once you know how much money you have to work with, you can look for savings. Need paper towels? Check the Sunday paper for sales or coupons. Go online to surf for coupons.

Every grocery store has protein on sale every week. Stock up on chicken and start researching recipes or cuisines: French, Mediterranean, Italian, or Eastern European.

And each style of cooking utilizes grains and starches, not only as meal stretchers but because prepared well are delicious. And the simplicity in the dishes is a thing of beauty.

Sometimes doing meal makeovers can be overwhelming. Don’t sabotage your efforts by trying to accomplish everything at once. If you’re not comfortable with the “Meatless Mondays” idea, try serving less meat: Buy two small steaks and make steak sandwiches, homemade baked potatoes, and a vegetable. No one will walk away hungry.

And don’t overlook the value of leftovers – not only do they save you money but they give you a day off in the kitchen.

The Potential Problem with “Budget Dinners”

Some of the recipes we researched think that squash soup is a respectable dinner for 4. I’m married to a recreational hockey player and that’s not going to work for him. If you have pre-teens or teens, that might be stretching the idea of “dinner.”

However, you can serve a hearty soup (vegetable beef, chicken tortilla soup) and supplement the meal with a grilled cheese, quesadillas or nachos, or a salad.

Another issue for me is “portion size.” You don’t have to miserly dole out a ladle full of pasta to save money. Bulk up meals with whole grains and fresh or frozen vegetables. Even a simple fruit salad (or apple slices) can be a welcome addition to dinner.

You don’t have to go hungry to save a bit of money. And always do what’s best for your family. In the long run, you’ll feel fuller in your stomach and your wallet.

Global Gifts

Holiday gift guide: Gifts with a purpose

Let’s face it. Two weeks after the holidays, that designer sweater that you spent way too much money on has already been stuffed in the back of his closet. Think smarter this holiday season by purchasing gifts with purpose. These hot-ticket cause-based items are not only economical, but also stylish.

(All items can be found online by clicking the name of the product)

Headbands of Hope

Two years ago, then 19-year-old Jessica Ekstrom was inspired by her work at the Make-a-Wish Foundation to make a difference.

“I was pulling my hair back in a ponytail and thought about the hundreds of girls I encountered that lose their hair to cancer. Being a young girl presents many struggles with self-esteem already, and losing their hair as a result of a life-threatening illness is traumatic,” she says.

She took action by creating Headbands of Hope. “For every headband purchased, one is given to a girl with cancer. $1 is donated to the St. Baldrick’s Foundation to fund life-saving childhood cancer research.” From shimmery beaded pieces to knockout headwraps, each band retails for less than $20. “Over 10,000 headbands have been donated to girls across the country and that same amount has been donated to St. Baldrick’s,” she adds.


Denik also helps children in need. It teams up with fine artists across the globe to design journals and sketchbooks that fund school construction.

“Currently the artwork is submitted through our website and reviewed by our art team. … We’re building a middle school in Mali, Africa. Mali is in desperate need of schools and increased education,” says CEO and founder of Denik Tyler Tolson.

Popping with color and bold themes, the journals are $12. $1 from each purchase is donated to building schools and 5 percent is paid to the designer. “As the user shares their own story on the pages of the notebook, they become part of something bigger. It stores memories, ideas, and passions,” he shares.

Buy Native

Like Denik, the Buy Native Campaign launched in 2011, during the recession.
“I was thinking about ways that we, regular people, can help our current economic situation, says Jessica Metcalfe, who organized a consortium of Native American jewelers, crafters, home decor and clothing designers.

“Individuals spend hundreds of dollars on gifts each holiday season, and if we put even a fraction of that money back into our local economies then we have the potential to see immediate positive impacts … our Native American artists, designers, and businesspeople are some of the most vastly underrepresented in the retail industry.”
Chickasaw jeweler Kristen Dorsey adds, “Native-owned businesses are a way for this unique knowledge and artistic traditions to be passed onto the next generation. The culture is preserved and allows for (small) business owners to make a viable living doing what they are passionate about.” Her designs are featured on the Beyond Buckskin website.

Changing the Present & Oxfam America

If you’re anti-gift wrapping, you can still be pro-cause by linking with hubs such as Oxfam America and Changing the Present. Both sites allow users to select gifts that directly impact change within a chosen region or field of interest.

Starting at $5 on, you can select from thousands of charities and non-profits to “… preserve an acre of the rain forest, fund an hour of cancer research, or provide shoes for girls in Africa so they can attend school,” says representative Robert Tolmach.

Oxfam America’s mission is to create long-lasting solutions to end global poverty, hunger and injustice. Its “Most Wanted” list of charitable gifts includes a goat (‘The Kid‘) and building tools (‘The Fixer‘),” all of which promote self-sustainability. Gifts start at $12.


Chie Davis

Chie is a blogger and video correspondent for The Huffington Post and, She recently produced a multimedia column on the phenomenon of art-based pop-up shops for KCET’s Artbound and has contributed to E! News, The Wendy Williams Experience, Billboard Magazine and NPR.
View all posts by Chie Davis →

Quick Decor Fixes For Under 50

Quick holiday decor fixes for under $50

While you are preparing for visitors this holiday season, make sure your home reads ready — not wreck! Don’t abandon your hosting duties if you don’t have time or resources to renovate. Robin Callan of Room Fu, sports a “black belt in bad-ass design.” The former creative director turned interior guru now helps people “navigate the challenging issues of remodeling” within a budget. Before the in-laws come knocking, here are Callan’s quick fix décor solutions to spruce up your abode for $50 or less.

Tip 1: Tackle

Tackle the area that your visitors will inhabit first. Set an alarm to organize the space for an hour and reward yourself once the task is complete. “Have comfortable linens, a reading lamp and a water pitcher on the night stand, Callan says. offers some DIY options for lamps for under $50.

“Good black out curtains are always helpful for guests who may have trouble sleeping.” Stock the bathroom with lotion, bath salts, an extra toothbrush and robe, she says. “Give them that hotel or spa retreat experience. You can get trial-sized things for little money. Put a tree branch in a vase in the bathroom. Just having that natural element takes you a long way.”

Tip 2: Tweak

Minor tweaks can transform a room from drab to fab. Callan emphasizes, “I’m a big fan of alternative color palettes for the holidays.” Add an accent color to your living room space by pulling from the colors of your Christmas ornaments. “Maybe that’s just 2 pillows,” she adds. World Market offers a chic selection of pillows for under $30.

Flip off the overhead switch and use low ambient light when entertaining. “A really fun statement lamp makes a big difference. I go for big, chunky, colorful vases in simplified forms. When you get that shot of color in an unexpected place, it feels like a huge upgrade. Home Goods always has distinctive lamps for a fraction of what you’d pay elsewhere.”

Tip 3: Paint

Want to attract prosperity in the New Year? Slap on a coat of courage. “There’s a lot that goes into the psychology of color and how it affects you,” says Callan. “I had a client who was a painter.” She neglected her craft for many years. After Room Fu re-painted her home, “her space felt much more personalized. It inspired her to start pursing creative outlets again. For $50 you could paint a whole room. If you’re scared of color, bump up your shade 2 notches on the color strip. It will be a shock for the first 2 weeks, but if you can just sit tight with it, you’ll be surprised.”

Tip 4: Flow

Establish a harmonious flow. The decorator explains, “In a bedroom, the first place I want to try putting the bed is opposite the door. So that when you’re laying in bed you have a clear view of the door. That’s good for both the inhabitant and the visitor. When you enter the bedroom, you see the bed in all it’s splendor.”

Tip 5: Utilize

Instead of dreaming of a walk-in closet, utilize hidden space. “A typical closet has 1 rod and 1 shelf above it. Even if you have a bunch of things hanging, (there‘s) all of this space from hip level down that doesn’t get used. With metro shelves from Target you can add bins and take advantage of vertical storage in your closet. I created a butler’s pantry in my laundry room, (in) an alcove under the stairs. I found used bookshelves on Craigslist for $10, for my cookbooks, small appliances and table linens. Everything has a place.”


Chie Davis

Chie is a blogger and video correspondent for The Huffington Post and, She recently produced a multimedia column on the phenomenon of art-based pop-up shops for KCET’s Artbound and has contributed to E! News, The Wendy Williams Experience, Billboard Magazine and NPR.
View all posts by Chie Davis →