Spending money is subjective. What I think is a waste of money may be prized by someone else as a necessity or an investment. Here’s what I save and splurge on.
What I save on:
- Cable TV – I’ve never had Cable TV. I see no point in paying for TV when there are free channels. When I have time, I watch my favorite shows on Hulu. You too can stop spending money on cable TV. (easily saves $40 per month, or $480 per year)
- Newspaper and magazine subscriptions – I seldom subscribe to newspapers or magazines unless I find a really good deal. I can always catch up on the news online or head to the library to read magazines, though I am considering paying for an online New York Times subscription. (saves $12 per month, $144 per year)
- Transportation – I live in L.A. and don’t drive.
I use public transportation. It would cost so much more to buy a car, pay for insurance, and budget for repairs and gas. I save money on public transportation by taking advantage of student discounts. (easily saves $200 per month, $2,400 a year)
- Entertainment – This category gets many people into trouble, but I’m always on the lookout for free events. I have to admit that I am a workaholic, but I don’t deprive myself. Luckily, I live in an area where I can easily head to the beach, museums, and parks to get away for free. (saves $50 per month, $600 per year)
What I splurge on:
- iPhone – I bought the first generation iPhone when it went on sale for $99. This summer I plan to upgrade to the iPhone 4. I couldn’t live without it because I can do everything from work to play. (costs $1,500 per year)
- High speed Internet – I pay about $40 a month to surf the web. Up until two years ago, I used the free dial-up connection that made the dialing noise, but upgraded for work purposes. (costs $480 per year)
- Cosmetics – I tend not to wear a lot of makeup, but I’m very picky about moisturizer, sunscreen, and anything that touches my face so I take advantage of free makeup samples. I am known to drop a pretty penny to purchase cosmetics without harsh chemicals. (costs $200 per year)
- Organic food – I only shell out money to buy organic items that are on the dirty dozen list and make sure I shop around for the best deals. I also splurge on organic milk. (costs $30 per week, $360 per year)
My savings add up to $3,624 while my splurges are only $2,540. My biggest expense is my cell phone bill. I don’t feel as guilty about this expense as I use it mostly for work and I’m making changes to my plan to lower the monthly cost when I upgrade.
Are you spending or saving on similar items as I am? Find out what Bargain Babe can and can’t live without.