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Even Big Spenders Can Save

Blog: larryviel
Posted by: Sunday 4th July 2010, 5:51am
Last edited 04/07/2010 5:51am by

How big spenders can become big savers. :-)

My aunt and her family is a good example of a big spender turned to a big saver. Before, they would always run to me to help in paying for either their bills or their credit cards. Since I am bothered at how much a family of three (my aunt, her husband, and their 3-year-old daughter) could spend so much in a week, I decided to track their spending habits in the past two weeks. Guess what I found? Hundreds of dollars going down the drain just because of poor money management.

I knew that its time that we have serious money talk. I was glad that her husband was willing to listen to my blabber. But I surprised them even more when I showed them the figures of how much each of them has spent. After a little confrontation between the couple, I then suggested some changes to make sure that they would get to save even if they tend to spend a lot.

First thing I noticed was that the couple tends to go for take outs and deliveries. Their fridge is actually empty except for a few perishables like milk, fruits, and mashed food. They shop only what they need and when they need it. What they didn’t know is that they could have saved much more if they chose to cook instead.

I also advised them to go use cash instead of credit cards when shopping. I told them to keep just one credit card in their wallet so they don’t get tempted into impulse buying. And that credit card shall be used for emergencies only.

There was a bit of hesitation at first, and adjustments were hell. But with my recent visit last week, the couple was already all smiles. They’ve managed to start paying off some of their credit card bills now. And what’s left of their money is now put into their daughter’s college insurance. If this keeps up, they would be able to clear their credit card debts and be financially secure in no time.

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