This is a guest article from Stefanie! She’s trying to find ways to stretch her budget in one of the most expensive cities out there, New York City. A graduate of New York University’s drama and psychology programs at the height of the financial crisis, Stefanie discovered the world of financial planning out of necessity. Thanks for sharing your insight, Stefanie!
There’s a simple savings tool you may have overlooked. It doesn’t require cutting back on indulgences, savvy investing strategies, or even detailed budgeting. The key is planning ahead.
Here are some situations in which waiting until the last minute might be costing you, and how you can plan ahead to save in the future.
Commuting
Running late can lead to a significantly more expensive commute. In NYC, it typically comes down to taking the subway or hailing a cab. For me, that’s a choice between $2.50 on mass transit and about $10 on a taxi. Needless to say, I always leave enough time to get to the train, or even better, ride my bike.
Meals
Failing to bring lunch, pack snacks, and plan dinners at home can lead to an expensive grab and go habit. Dropping into the local deli or visiting the office vending machine for an afternoon pick me up carries a convenience cost that can add up quickly when it becomes a daily habit. There’s no need to cut out afternoon snacking. Just buy in bulk and bring from home. Or, if you have trouble remembering to pack a daily snack, bring the whole box and keep it at your desk!
Travel
You may get lucky with a last minute deal, but generally speaking, booking travel late in the game is an expensive endeavor. According to International Business Times, “…the worst time to buy a [plane] ticket is the day before. Two days before is a close second, and then three days and so on…” You probably have to request your vacation days or confirm visits to family and friends in advance anyway. Plan travel as soon as you get approved to avoid putting it off and getting stuck with the high prices of last minute booking.
Expedited Service
From shipping a package to dropping off dry cleaning, a quick turn around will cost you. I recently renewed my passport and know first hand that expedited service will run you an additional $60 charge plus the cost of overnight delivery fees. Note expiration dates on all important documents or service contracts. Mark your calendar with special events that will require specific preparations. Then flip your planner to a month before and make a note to deal with each of those items and expirations ahead of time.
Seasonal Purchases
From clothing to holiday decorating the best deals are always available at the end of each season. Rather than stocking up on winter boots in March and Christmas decorations in January, the majority of people continue to choose to pay the premium of shopping during the peak price season. Shop smarter by taking advantage of the end of season clearance deals.
“Drop In” Buys
A quick trip to the drugstore to buy shampoo, deodorant, or whatever you just ran out of is almost always more expensive than if you plan ahead and order items in bulk, purchase with coupons, or use a subscribe and save service like Amazon.com’s. When it comes to dry goods, paper products, personal care, and anything else you use consistently that doesn’t go bad, stock up when you see savings or order online when you find yourself getting to the bottom of a package.
These are just a few examples of how failing to plan ahead can lead to expensive, last-minute decisions. How has waiting until the last minute cost YOU?
Plan ahead AND have an emergency fund for when something comes up that you didn’t plan for. I used to not plan my expenses whatsoever and I ended up spending a ton of money on thinks like unexpected oil changes for my car or seasonal stuff like Halloween candy that I could have saved money on if I didn’t wait till the last minute.
Yes. Financial planning- the emergency fund, retirement, budgeting, etc is a HUGE part of planning ahead.
Being frugal, in a lot of ways, is about doing things on time if I may interpret what was basically said in this post. But yes, it is true and you said it just right.
You got it. Punctuality pays off.
This is a piece of advice that I could use desperately. When I don’t leave enough time to catch the free bus, I’m stuck driving into work. Between the wear and tear on the car to the gas used to the time wasted looking for a spot to park, it’s a huge waste. Time is essential to get on the right track here. Thanks for the comment!
Great article! My budget usually gets messed up by not thinking about all the different things we have planned for the month. We get everything set for a nice surplus and BAM! We realize we forgot to add the car insurance we pay only once every six months, or something similar.
Those irregular expenses are so tricky. Try marking them in the calendar now!
Ben,
This is a great idea that may need a specific post! Haha. How to deal with irregular budgets and strange costs… Thank you for bringing this to our attention.
All the best,
Sam
I actually wrote about my experience with those irregular bills after dealing with my passport renewal. I appropriately titled it, “Oh Shit, Yeah That Thing Budgeting” 🙂 http://thebrokeandbeautifullife.com/2013/09/17/oh-shit-yeah-that-thing-budgeting/
Great reminders Stefanie! Planning ahead usually means you’ll come out ahead financially.
I’ve also found planning to be much easier than being late and stressing so it helps all around.
You have a great point about “drop in” buys. We recently started ordering some of our regular buys off Amazon and we love it. It saves us time since we can avoid going to the store, and as you point out it also probably saves money because we avoid the impulse buys. We also live in a state that does not have an Amazon distributor so we do not pay tax on our Amazon purchases. And Amazon sometimes even has coupons you can clip while shopping for the products!
Color Me Frugal,
You actually live in a state without the Amazon tax!? That’s wonderful! Those are getting harder and harder to find. Haha.
Thanks for the comment!
Sam
I love those amazon coupons, clicking a button is so much easier than clipping, storing, and remembering to use.
Great stuff. I think failing to plan is the primary reason that so many individuals struggle with money. It’s really not that hard to get ahead and spend less if you’ll conscientiously think about your spending.
Exactly. Taking a big picture view and looking ahead can save so much.
Your posts usually have broad application, Stefanie. Planning is usually the highest correlate with success in all endeavors, in my opinion…work, time management, social life (got to make plans to actually hang out with friends), etc. etc.
Absolutely. Planning is useful in EVERY aspect of life.
All those tips are very important. I know I have paid a lot in airfare for procrastinating. Also things like renting a car, you need to plan your trip well or you may incur additional charges. And the major one, plan to pay bills on time or else, you might pay late charges or high interest.
Late fees and interest are just SUCH a waste of money (when avoidable). I’m vigilant about checking my bills and balances.
I’ve since learned something about those drugstore visits… avoid “flagship” stores for need buys. I also learned that certain Duane Reades are holding places for clearance items… I live in Brooklyn not far from the Fulton Mall area near downtown BK and there’s a Duane Reade over there that has the BEST sale prices on toiletries! Love going there for sales.
Interesting. Thanks for the tip Tara.
I think in all areas of life, good planning can really get you ahead. This is why we budget, keep lists and think about the next step. Excellent advice.
True. Planning is beneficial in every facet of life.
I lived this over the weekend….normally we do grocery shopping on Saturday, but we just didn’t find the time to do it this week. So, when Sunday came around we didn’t have any planned meals, and my efforts to “hodge podge” something together was met with resistance…thus I was sent for take out. Mediocre food, overpriced. YUK.
That’s the worst, when you splurge on something last minute and it’s just mediocre. Woof.
Great tips Stefanie. I think every Christmas decoration we own was bought between December 26th and January 2nd for like 85% off the retail price! You can save a TON of money by becoming a smarter consumer.