How to Reduce Discretionary Expenses

In preparation for the release of the audiobook version of Live Well, Grow Wealth, I'll be sharing excerpts each week on this blog. 

This excerpt is from Chapter One, Live Within Your Means. I suggest categorizing your expenses as absolutely necessary, necessary but reducible, discretionary but important, and totally unnecessary. This post discusses discretionary expenses. 

Chapter Two will delve into deriving the most value from your money and deciding what discretionary expenditures bring you the most happiness. But if you're spending more than you earn, this category is a logical place to look for reduction. Do you subscribe to magazines or newspapers you never read? If so, cancel them. 

When you plan to leave town, do you fail to place a vacation stop on your deliveries and ask that your subscription be extended? Do you buy books or movies you could have checked out of the library? Do you watch all those premium cable channels you're paying for? 

Does your calling plan require you to pay extra for features you don't need or use? Contact your provider or check out a different one to see if there's a less expensive plan that suits your needs. Are you paying dues to a country club or gym you rarely visit? If so, be honest with yourself and drop out. 

When you travel, do you buy souvenirs that end up in the next garage sale? Do you exchange gifts with people just because it's expected? (And then later re-gift what you received, knowing your friends will do the same?) 

Are you paying for a storage facility to keep "stuff" you'll probably never use or might have even forgotten about? Why not de-clutter and have a garage sale, or make a donation to charity, saving yourself the monthly facility rental bill? 

Do you over-pack when you travel? Years of working for an airline and flying standby taught me to pack lightly, rarely taking more than will fit into a small roll-aboard suitcase. (And this includes packing for a cruise.) Pack light-weight, washable outfits that can be mixed and matched and worn with the same pair of shoes, and wear your bulkiest items on the plane. Not only will you save checked luggage fees and tips to porters and bellmen, but packing lightly will enable you to maneuver the public transportation system at your destination, instead of hopping into an expensive taxi. (And some taxi services even charge an additional fee for each bag.) 

Can you let more time lapse between haircuts, coloring, manicures, pedicures, massages, car washes, professional cleanings? Instead of taking the kids to a movie every weekend, can you rent a video and serve microwave popcorn once in a while? Do you have to go out for lunch every day, or can you brown bag it, at least sometimes? Can you make coffee at home instead of buying a latte at the drive-through? The point is to find areas you can cut without compromising the quality of your life to an unsustainable level.

To learn more, read Live Well, Grow Wealth by Sharon Marchisello.

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