Chopping extras has big rewards

From the book Survive the Crunch
by Catriona MacLennan
Many people fritter away thousands of dollars a year on inconsequential spending without really being aware of it.
For example, if you spend $4 a day on coffee five times a week, that adds up to more than $1000 a year.
If you have a 30-year mortgage, you will spend more than $30,000 on coffee over the life of your loan.
If instead you put that money towards paying off your mortgage earlier, you will save thousands of dollars in interest and be debt-free years earlier.
Alcohol, cigarettes and buying your lunch every day are other expenses which rapidly mount up.
Add to that movies, magazines, trips to the dairy for treats and unnecessary trips in your car.
A good way of making yourself aware of how much money you are spending unnecessarily and unproductively is to record in a small notebook all your spending for a week - or even better, a month.
You will probably be shocked by the rate at which your money is disappearing and by how little you have to show for it.
Sacrificing some of your discretionary spending can make a considerable difference to your overall financial position.
Ideas to get you started:
Work out how much you are spending on communications each month - texting and speaking on your mobile phone instead of using a landline, downloading from the internet - you can save money by signing a plan which suits your usage. Make sure you stick to the limits.
If you jump into taxis frequently after evenings out, this will add up to a lot of wasted money. Work out how you can get around more cheaply - perhaps by taking it in turns with friends to be the sober driver.
If you smoke, add up how much you spend weekly, monthly and yearly on cigarettes. Then calculate how much you are likely to spend in a lifetime. The total will be staggering. Try to give up and reward yourself by buying or doing something you have always wanted with part of the money you save.
Alcohol is another money black hole. Cutting down on how much you drink will not only save you money, but will make you healthier.
If you spend a lot of money on magazines, consider buying just one and swapping different publications with your friends. It is also cheaper to buy magazines by subscription.
If you have regular manicures, pedicures, waxes or facials, set time aside to do them yourself at home, possibly with like-minded friends.
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Catriona MacLennan is author of Survive the Crunch, a book full of practical tips and user-friendly advice on what New Zealanders need to know to survive In harder times. Published by HarperCollins, and available at any good bookstore for $24.99.