Boiling The Frog. Living In Excess.

Today We Live In A World Of Excess

Beware of the boiling frog

We all love our big cars, big houses and the ‘fat’ American lifestyle but it is getting out of control.

My favorite example is how the typical home has gotten bigger. 41% of homes have more than 4 bedrooms today, (vs only 18% in 1983) yet no one has noticed.  Everything around us has grown. The best examples are food. The average bagel has doubled and the average size of a soft drink is 60% larger today then it was only 20 years ago.  This post isn’t about how many calories you are consuming, it’s about losing perspective and the fear of the boiling the frog. The boiling frog is an old parable or fable on gradual change & the consequences.  We simply don’t need everything we have, yet we continue to sit in the water as it starts to boil. This includes boiling our finances too.

Every quarter we go thru and review our finances and how we are spending our money. Below are 5 simple ways to cutout the excess. Ribbit! ribbit!

Simple Ways To Cut Out The Excess. Changes We Have Made For 2019.

Tip #1: No One Needs 20 Oz. Of Coca Cola

The average soft drink at a restaurant has grown by 60% since the late 1970s.  The recommended serving size is 8 ounces. Today, the average soft drink has increased to nearly 20 ounces (the majority actually choose the 24 ounce size) from 12.9 in 1977. It is simply too much and unnecessary.  Go ahead and choose the small soda and save yourself the $1.50. Even better yet, choose the water, a healthier option and forgo the extra sugar all together. 

Top #2 Choose 20 Channels Not 200

The average cable bill in America, now exceeds $85 per month.  We all love choice when watching TV, but most of us watch on average only 9 shows a month. (e.g. news, sports, reality TV, etc.)  Seems excessive to have 200 channels when you watch less than 15 of them. Also, with online TV set top boxes like Roku, Amazon Fire TV Stick or streaming services like Hulu, Netflix, Sling TV, etc. there are other ways to still have access to content. We cut our cable bill down to the basics two years ago. Guess what, we don’t even miss it and still have access to the shows we watch. Also, it’s created more time as a family and added about $60 per month into our pockets. That adds up to $75000 over 30 years towards retirement (assuming 7% rate of return).

Tip #3: Unnecessary & Unused Subscriptions

The world we live in is littered with subscriptions (e.g. $7.99 and $9.99 per month everywhere). Is it possible you are paying monthly dues at a gym or club that you never use? Above and beyond you may have excess app subscriptions, wine clubs or even subscriptions like Dollar Shave Club, Harry’s or Stitch Fix. All of these add up.  If you’re on the fence about any of your memberships or find that you’re not using them very often that answers the question – cancel them or pause them.  Remember, you can always renew the membership at a later date if it turns out that you actually do need it. I suspect you are living in a world of excess.

Tip #4: Re-check Insurance Policies & Coverage

Over 90% of households own a car and 65% of households own a home. Insurance is not only a necessity but an expensive cost for everyone. While insurance is pretty much a given, and you want to ensure you’re getting the best deal for your needs. It can be beneficial to shop around for a new car insurance or home insurance policy every few years to make sure you are getting that best deal. There are several applications and tools that you can use online. Many of the top companies have their own calculators to shop their competitors.

Tip #5: Watch Out For Electrical Vampires. Reduce Your Heating Costs

I do believe the world is getting hotter. There is my controversial comment for today, global warming. For average Americans, their heating & air conditioning bills are the 3rd largest monthly expense and yet the one that is most ignored.  Experts will tell you can save up to 3% on your heating bill for every one degree you lower the thermostat. The same works in the summer when you think about your air conditioning. We lowered our thermostat from 72 to 68 during the winter and raised it to 75 in the summer. Every penny counts. Also, there are plenty of other ways to lower your energy bills thru technology.  My favorites are moving to LED light bulbs, timers and switches on certain lights around the house. It creates a great ambience and lowers costs. We also use NEST throughout our home. On average we saved about $25 per month from eliminating vampires and reducing heating/cooling costs.  A cool $25000 added to retirement.

Tip #6: Make Meals At Home

I have covered this before in that the average American eats out 4.5 meals per week. While I still like an occasional lunch or dinner out, more often we pack a lunch & plan better on the weekends. At most we may order a $5.99 pizza but the rest of the time we ate at home. Most Sundays we make a large meal and split it into portions for the week. We invested in a Vitamix blender and now make smoothies for less than $1 per serving. This works for us, but more importantly works for our kids. The average school lunch is now over $2.25 and there are much better ways to spend your money, not to mention healthier options.  Be smart, plan ahead and save a few $$$ along the way. Stop boiling the frog.

Tip #7: Buy In Bulk. Use Great Apps To Save You Money

There are several ways to save money here. Groceries are the 2nd largest expense for a family outside of their mortgage/rent.  The U.S. department of agriculture shows the average monthly cost for a family of 4 is between $650 and $1100 per month. That is a ton of money & opportunity.  Things we now do differently. We do shop for coupons, do use apps like savings catcher.  I regularly shop at our local warehouse club, but generic brands more and more and have given up our favorite Vodka for Kirkland brand. We cut that cost in half!

Remember that life is a game never won or lost, only played.