How to Save Big Money With Just A Few Changes in Habit
WHITFIELD: All right, so before the break we asked you about the job market, what percent of people worked retail jobs? The answer -- retail jobs make up 24.1 percent of employment, and according to the national retail federation providing 42 million jobs. So it is the number one issue in many American homes, getting your financial house in order. So today in our weekly financial fix we're focusing on what you do at the office and how you can save money, big money, by changing just a few habits. Financial planner Karen Lee joins us. She's the author of "It's just Money, so why does it cause so many problems?" Let's start with your morning coffee you say this will not be painful.</s>KAREN LEE, FINANCIAL PLANNER: No, the main thing I want to remember it is the little things that add up. We buy certain things. We think it is a dollar, $4, no big deal. We'll show you how they add up to not just hundreds but thousands of dollars every year you can save.</s>WHITFIELD: My gosh. Beginning with how a lot of people start their day, make it a routine, want to go to a coffee or tea shop and have something.</s>LEE: Get the fix, right? Let's say you get a specialty coffee, five days a week when you go to work, 4 bucks a day, $960 a year.</s>WHITFIELD: My gosh.</s>LEE: If you go buy the gas station, probably $1.50, about $360 a year. If you make it at home or drink it at work, free to pennies. Right there we have over $800.</s>WHITFIELD: Get yourself a thermos.</s>LEE: Exactly. That's our next one. Go for a bottle of water.</s>WHITFIELD: That's right, there too --</s>LEE: Stop at the gas station.</s>WHITFIELD: Keep buying the water and over time that accumulates.</s>LEE: Grab one at the gas station, at least a buck a day, $240 a year. Buy a case of them at the grocery store, 13 cents a bottle. Maybe 30 bucks over a year, or like you just said, Fred, bring your own thermos and fill it up and that's free. We saved you $1,000 dollars.</s>WHITFIELD: I'm adding it up, 900 something, 200 something. And now bagging it for lunch.</s>LEE: Lunch, you know I say the number one place people overspend is eating.</s>WHITFIELD: It's probably about $10, $5 and $10?</s>LEE: A lot of times people tell me you can never eat out for 10 bucks.</s>WHITFIELD: Really?</s>LEE: Let's do ten bucks a day. $2,400 a year.</s>WHITFIELD: My goodness.</s>LEE: Go through a drive-in window, I just go to wherever, 5 bucks a day, $1200 a year. If you brown bag it, you can probably do that for a buck, $1.50 a day. That's 360 bucks. You add those first three tips together, Fred --</s>WHITFIELD: It's $2400 a year, is that how much people are spending on lunch?</s>LEE: If they eat out, and add it up. Wait and save $3,000 right there.</s>WHITFIELD: I'm adding it up. And then we talked last week about how you are the ultimate bargain shopper when it comes to clothes.</s>LEE: My girlfriends love to shop with me.</s>WHITFIELD: People feel like they have got to present themselves at work. They have to spend the money to look that part.</s>LEE: One of the advantages we have in Atlanta is our summer lasts all the way to November. So right now you can buy summer items of the clearance rack. Please don't pay more than 50 percent off retail, 50 percent to 80 percent now. And then some people like thrift stores. I'm not a big one on that. But we said it last week, many people get great bargains at thrift stores.</s>WHITFIELD: Absolutely. I'm still very inspired by your $12 --</s>LEE: My $12, right, right, right.</s>WHITFIELD: Then the commute. You've got to drive or catch the bus or something, sometimes you can't avoid.</s>LEE: And we don't realize when we drive in ourselves how much it is costing. So we have got gas, we have maintenance on the car and depending where you work, you may have parking, right? One thing would be get a car pool. I know it might not be as fun and independent as having your own car, but car pool, you cut your costs in half. And public transport. And, of course, all these things we're talking about are good for the environment. So also very good things. Fred, before we finish, I want to say, do you know what I hear is the number one excuse people don't do most of these things?</s>WHITFIELD: Convenience?</s>LEE: I'm exhausted.</s>WHITFIELD: Don't have time to make the lunch or the coffee.</s>LEE: I'm exhausted. I'm not organized enough. So if you're struggling with money, these are things that would make a huge difference in your life.</s>WHITFIELD: Maybe just make -- it means waking up a little earlier to make the lunch, prepare the coffee, fill up that container of water.</s>LEE: Planning the dinner you make the night before, something that would be leftovers.</s>WHITFIELD: Oh, my gosh. So that was over $3,000 in savings and that didn't even include the clothing savings you were talking about and the commute.</s>LEE: That's right. My message is it is those little single dollars and $4 things we do that really can add up.</s>WHITFIELD: And we like the little things you have to do for big savings. Karen Lee, thanks, appreciate it.</s>LEE: Thanks for having me.</s>WHITFIELD: And of course you want to get more information by reading Karen's new book "It's just Money, so why does it cause so many problems?" Or you can reach Karen at Karenleeandassociates.com. Free money advice, but you got to buy the book. You want that advice. Thanks so much, Karen.</s>LEE: Good to be here.</s>WHITFIELD: Looking for a way to make some extra cash, by the way? DailyFinance.com put together a list of what Americans do to make extra cash on the side. We'll take a look after the break.