Identifying and cutting down on ‘hidden costs’
A good way to live on a small budget is by not spending money on crud — me, 2023.
I always feel a bit sad when I hear friends and co-workers moan about their need to work full time to just afford a living, while at the same time I see them spend money like it is water, and they don’t even seem to notice. 💦💦
For example:
Preparing a lunch at home instead of buying on-the-go. If you simply buy a loaf of bread and take 4 slices out of the freezer every morning and put let’s say Salmon on your bread, then you can eat 5 days a week for €8, that’s €1.6 per day. And you are eating fresh bread with Salmon, a meal of kings. I’ve we had to buy the same meal in a store we would pay about €5 per day, so that’s €25 for a week vs. €8. €17 saved in one week is €884 per year. 🥪
Commuting by bike instead of by car. This, of course, only works if you live on a biking distance from your workplace. But why on earth would you seek employment further away? Instead of spending time lucked up in a tiny fish tin (a car) you get to spend time outside in the (hopefully) fresh air while doing a little healthy and light exercise as a bonus. Moreover, ever seen bikes in a long queue? Exactly, chances are you’ll save time on your commute as well as fuel. Say that you live 15 km from work, so back and forth is 30 km per day or 150 km per week, or 650 km per month. That is a full tank of gas, or about €125 per month, spent on a commute that could be virtually free. I bought my bike for €50 nine years ago, and it still works with only once needing maintenance, and that was for about €25. So €125 per month or €1500 per year saved, while also getting in better shape… not bad eh? 🚲
Get a sim-only plan instead of one where a phone is included. There are scarcely any people who need to replace their phone every two years, and yet that is what most phone plans will force you into. This is a waste of money and the environment. So instead of paying €30 per month for a plan you don’t need, you could probably do with one that costs €5 to €10. Therefore, that’s another €20 per month or €240 per year saved. 📴
Bonus. Don’t buy gadgets, or, when you do, be realistic in what you need. Our sister blog “Jan’s Tech Talk” has a great post about buying a new iPhone on a budget, you can read it here: iphones-have-been-getting-cheaper. 📲
Did you notice that all these saving tips have a few things in common?
- You need to think ahead, like, go shopping and have food in your house, instead of thinking only about food when you start to feel peckish. 🤨
- You need to be willing to endure some minor physical discomforts. Biking is fun, except when it stops being fun in the sweltering summer heat or freezing winter cold. 🚶
- You need to be aware of needs and wants. Yes, I’ve had an unlimited data plan on my phone too, and yes, like you, I never burned more than 10 GB per month either, so why on earth did I pay for it? 🙅
Those three simple ways to save a bit put together meant we saved €2624 per year.
I don’t have grant theories or big plans that I work towards here. I just want to show you that with a little thinking ahead and making conscience choices, you too can live on a much smaller budget and save much more money. Not because it’s useful to just have more money on the bank, but because now you can spend it on the people and experiences that really matter to you.