We are all guilty of it. Spending without thinking! We like it, we buy it, we want it, we get it.
But all those little things can add up. We put our co-worker to the test. We gave her a big 2 week challenge!
Indigo Silva is a 25-year-old morning TV News Producer. She has student loans and a credit card to pay off, she owns a home and a car. She is cutting out all the extras in order to see how much she can save. She also video blogged along the way.
She says, "I figure that in like a 2 week span, I'm spending like almost 400 dollars from everyday life like going out with my friends, alcohol, gambling... I'm just gonna miss not being allowed to spend when I want to, I think that's going to be really hard."
She's grocery shopped to prepare, because she'll be eating more at home, stocking up on ice cream to satisfy her cravings.
Indigo knows, she's going to have to hold onto her dollars, no gambling for 2 weeks either.
"I typically will gamble like about 100 to 150 dollars every 2 weeks trying to win it back! Doesn't always work that way," she says.
On day 2, she hit the gym, and she had to resist buying herself a treat. "I typically crave like a smoothie or something after, but I can't do it this week, sooo we'll see how this goes."
She made it. But, the next day, she realized getting her nails done was an "extra." So that's not happening this week.
Indigo video taped her gel nail polish removal. "It is day 3, and my nails are looking crazy... so.... I'm taking them off on my own." Her nails usually cost her about 65 dollars, so this IS big savings!
She was also stressing about her costume for a Halloween, so she searched her closet... "I have a green skirt... that's a good start!"
She decided to be a girl scout, and makes most of it with odds and ends. She pulled it off and looked fabulous.
Friday is payday and Indigo heads to a bar after work with her co-worker and friend, Bonnie. But, she can't buy her own drinks.
"Friends are very important during this time, Leo, are you my friend during this time? "I would like to buy you a drink!" Oh my god, yes! "
Indigo had some setbacks that weekend. We checked in with her Monday at work.
She had spent 60 dollars on her friend's birthday dinner and an Uber, so she didn't drink and drive.
But she's happy that her mindset is changing when it comes to grocery shopping.
She says, "Normally I'd spend anywhere between like 60 to 80 dollars and I spent 55 so I gave myself a pat on the back when I left Trader Joes, I was like good job girl, you're doing excellent!"
Indigo's family and friends are all cheering her on! Her mom is commenting on our Facebook LIVE posts.
Then, it was time for the big reveal, with our financial analyst Steve Budin. How much money did she save?
$260.
Budin says, "I'm proud of you this is fantastic!"
So let's be realistic.
If she took back 125 for herself. That would leave $135 to put aside every two weeks, which is $270 a month, which is $3,240 per year.
What can she do with the extra money? Budin says, "you can open up a separate account that doesn't have access to a debit card, so it's kind of in a mini safe."
Indigo has a decision to make: push more of her money towards paying off her student loan or her credit card balance. Budin advises, "interest rates are usually higher on a credit card, you could be paying 15 / 16 percent so it's important to get that high interest debt down first, even though it's a smaller balance."
He also recommends paying off debt as you go, because remember, every dollar that goes in, saves you on the interest you are paying.
"Indigo is proof positive that anybody can do it!"
