One of the biggest killers of your savings is unnecessary spending. How do you keep from going over budget and only buying what you need? I have always kept a list.

One of the biggest killers of your savings is unnecessary spending. How do you keep from going over budget and only buying what you need? I have always kept a list.

So, I was going to grad school in San Francisco during the dot com boom when everyone wanted to live there, and multi-millionaires were being made daily right next door in the Silicon Valley. I was meeting people that were retiring at the age of 30. I was not one of those people however. I was going to grad school there living on a shoestring budget. I think this is where I learned how little I could live on and how to do it. First off, I kept my expenses low. I lived in a room in a warehouse downtown with roommates where I paid $375 per month, I had a landline phone that I shared with the room next to mine (I honestly don’t remember the cost but I‘m guessing about $50). I got around by bicycle mostly but bought a monthly bus pass as well which cost $30. I didn’t own a television, computer (used the one at the college), or cell phone at that time so I didn’t have any of those expenses. I got paid about $1000 bi-weekly and I knew where the whole check was going before even getting paid. I had a very well thought out and tight budget. If I needed money to buy a plane ticket home to Colorado, that would have to be factored in well in advance and I would go without a few things. Anything that I needed such as a hairbrush or a pack of cigarettes would also be factored in using my handy dandy list. What was the list?

My list functioned in a few ways for me. It was essentially any white piece of paper divided in sections by stores I went to. I may also have a section of different dishes I wanted to make for the week. Another section was a things to do list (such as go to the DMV, take back library books, etc). There are a multitude of different organizing tools out there, especially today with the various programs, apps, and printables etc. but for me in the hustle and bustle of San Francisco city life, it was the list. I could pull it out of my handbag or backpack and jot something down in an instant. See my current list here

So why would I need to list more than one store on my list? You may be the person that goes to the same grocery store weekly and gets everything in the same spot as many people do. Again that is a personal choice. The reason I choose to frequent several places is to try to get the best price and I simply don’t seem to be able to get all of my weekly goods in one place. I may get meat, eggs, vegetables and dairy in one store, dry goods in another store. My current list includes local grocery store specializing in goods with a soon approaching expiration date sold at a reduced price. I also have my local Kroger, Costco, Natural Grocers, and Wal-mart that I will go to as well. I will always stop at my bargain food store first. My kids call it my second hand food store, but you can buy milk and eggs that are set to expire the next month. They have organic and imported foods that you will not find anywhere else. It’s very hit or miss what you will find. I stop by there first and buy and buy anything that I have on my list as it will always be cheaper there. I will go to Natural Grocers for my perishables as they are organic and I find their items are cheaper than the regular grocery store’s organic items. There spices are also a steal as they give you a lot for a minimal cost (3 oz. For $1-$4 depending on the spice/herb). Then I go to Costco for things like toilet paper, paper towels, laundry detergent, bulk chicken and juice boxes (everything we use day to day). Finally, I go to Wal-Mart for any dry goods I need. The most important thing about my list is, I only buy what is on it. There are no impulse buys. If I find I need something through the week I add it to the list. If it is something I really need, I will need it when I am at the store. If it is not on the list I didn’t really need it. To add to the detail I will also only buy within budget. For instance I may have to buy tires for my car so I will decrease my food budget. I may have $200 for the week to feed my family. So all items on my list must factor into the budget. For this reason, I pretty much know all of the prices of the items I plan to buy, or I can look up their average price online pretty quickly. If I am over budget I will have to prioritize/substitute. Well maybe I can substitute the cream I usually put in my coffee with milk, buy apples that are on sale vs. the strawberries. The microwave popcorn I had on my list is not really a need as it is a want. So we will add it to next week’s list and see if it makes the cut then. Additionally, all items we own we use until they no longer suit their purpose. For instance, I have a hairbrush missing half of their bristles but I can still brush my hair perfectly. I have a toothbrush however that is pretty worn out, so it may be time to add that to the list.