Sunday, September 28, 2014

Changing My Habit Saves Me Money Better Than Geico Insurance

Switching to Geico Insurance saves you 15% on your car insurance, But wait, there's more! Changing your day to day habbit can be more beneficial than switching to Geico insurance. Before the start of 2014 I created my personal goals, and one of those goals goes like this:
  • Increase my savinsg rate. 2013 has been a really good year for me. I learned so much  about  techniques on how to increase my savings. I have a lot more of room for improvement, a lot more room to learn. I'll try to increase my savings rate by minimizing my expenses. 

It says right there at the very end, minimizing my expenses.
I treat myself as a business. I generate cash thru my labor, but I need to spend money for myself just like any business to be able to generate cash. I used to be a restaurant manager and from my experience this is what I will share. I pointed it out too on my previous post My basic equation to FFI have to increase my sales then minimize my expenses. I will focus on my own expenses and going thoroughly on numbers and how much I am saving every year better beating Geico! :)

Car Insurance:
Before: $140 per month for full coverage on my Honda Accord
Now: $35 per month for liability only on my Honda Civic
Savings: $105
            Yearly savings: $1,260

Before: $500 per month for my Honda Accord
Now: $0 monthly payment for my Honda Civic
Savings: $500
           Yearly savings: $6,000

Before: $120 per month
Now: $60 - I bike half the time to work.
Savings: $60
            Yearly savings: $720

Lunch at work:
Before: $160 per month for an average of $8 lunch x 5days x 4 weeks
Now: $0 I bring my own baon and everybody should too!
Savings: $160
            Yearly savings: $1,920

Before: around $350-$400 per month. We used to buy every junk food and soda out there.
Now: $200 per month. We are more conscious on what we eat and avoid stuff we dont need.
Saving: $150 per month
             Yearly saving: $1,800

Family night out:
Before: $500 per month on movies, restaurants, theme parks, mall, etc.
Now: $200 per month. We eat out one weekend a month in a fancy restaurant for an average of $50 for three people meal. We cook at home more, avoid mall and them park but instead go to parks more often and if there is movie we want to watch we use netflix, redbox. If its a special movie that has to be seen in theaters we use our credit card rewards point for AMC theatre tickets. 
Savings: $300
            Yearly savings: $3,600

I will let you guys calculate the math on how much I save every year just by changing my habits and without being a miser. I dont feel like my family is getting deprived, and looking back on how much I was spending before, I feel like I am throwing money away.

I need more tips on how to minimize my expenditures, please share your strategy on savings. Much appreciated!

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