Spending habits; five ways to save your money in 2009

By: Sean Dotson

Posted: 1/13/09

Sean Dotson

Strong like a bull, tall like a bear

New YearÕs Savings: ItÕs the small things we can do that count

By Sean Dotson

The past year was defined by high gas prices, crashing economic markets and spending cutbacks. For the first time in years, budgeting became more important than overspending. I know, all of this news sounds truly awful, but there is hope for the year ahead. Gas prices have fallen drastically and many goods are becoming more affordable. Whew, thank goodness.

On that note, it is clear that we should change our spending habits. IÕll be the first to admit that I enjoy a fun, exciting and often expensive night out on the town, but there are a number of small things we can do that will add up when it comes to our wallets.

Don Dutkowsky, professor of economics in the Maxwell School of Citizenship and Public Affairs, said, ÒPeople are taking a good, hard look at their previous habits. Do we have to travel as much, do we need a new car. The bad economy is forcing them to (make these decisions).Ó

With this in mind, here are a few ways you can still have your cake and eat it, too:

1) Paying full price is a thing of the past, kiddies. Dutkowsky explained that sales have been down since October. Here is where the good, and less boring, news comes in, folks: stores are issuing more and more sales. One trip to the mall made it clear that after-Christmas sales were at their peak compared to years behind us. Point blank, get to the mall and check out the hot deals. I hit MacyÕs and got an entire outfit for just over $20. ThatÕs where itÕs at.

2) Skip out on your daily coffee run down on Marshall Street. I enjoy a mocha cappuccino as much as the next person, but that adds up. Do the math: $4 per day times 5 days per week times 52 weeks per year equals $1,040. If you really need the caffeine fix, hit PeopleÕs Place, they have hot deals everyday of the week. Get it? HOT deals. We all have a daily routine that includes small spending, but it can add up. Cut back here and there, youÕll definitely see a difference.

3) DonÕt order out as much. Cooking or visiting the dining hall is a lot cheaper. Make a homemade meal for yourself and use leftovers as lunch for a few days. LetÕs be honest, it will help to kick that gut that you promised to pay more attention to this year, too. Further, before you leave for the store, make sure you make a list of what you need. That way, when you get to the store, you donÕt hit up the chocolate and snacks aisle; IÕm totally guilty. Get what you need and get out.

4) Have a movie night with your friends. Popcorn, some candy, drinks and two tickets can cost a fortune these days, particularly at the movie theater. Plus, you can pause the movie, move around and talk as much as you want. Not to mention you can forget about the worries of sitting next to a mysterious and potentially smelly stranger. Gross.

5) Cause a dramatic and sappy breakup between your credit card and your wallet. Debt adds up, plus killer interest rates are murderous to our bank accounts. If you insist on using the card for essentials, then take the advice of Professor Dutkowsky, ÒDonÕt overextend yourself. If you use the credit card, pay it off.Ó Make sure you know your interest rates, as well. If you donÕt pay your bill off in time, you could end up paying up to four times the original amount.

A cutback kind of budget doesnÕt necessarily yield a lower standard of living. Moderation counts and you should always keep a mental balance of spending money on this or that. Keep track of your spending and see how much you can save this year. You may be in for a big surprise.

Sean Dotson is a sophomore geography and international relations major. He now visits StarbuckÕs once a week and sleeps a lot sounder, too. He can be reached at smdotson@syr.edu.