photo credit: r-zI have been tracking my family’s monthly expenses for several months now. After having a chance to review the data, I have been able to identify several areas for improvement. One of the main expenses we have been working to decrease is around our grocery & entertainment spending. We have been focusing on reducing this variable expense in order to free up more cash that can be used to create new alternative income streams. While reviewing our monthly budgets, I have also identified our Top 10 expenses that are NOT frugal. I always like to discuss ways to save money or how to reduce expenses, but have never discussed the other side of the equation. The list below identifies these non-frugal behaviors where we could cut expenses and save money but have chosen not to. I am not saying that we will continue or stop making these choices, just that we have made a decision in the past that was not a frugal one.

1. Impulse spending on lunch – I have cut back a lot in this area, but during times of stress at work (and there is a lot lately), I often buy lunch and drinks at our cafeteria. I always feel guilty afterward and have tried to control this expense.
2. Pay for Oil Changes – As I pointed out recently, I am guilty of paying for car maintenance when I could save money doing it on my own. I always pay to have the oil changed in our vehicles out of pure convenience.
3. Gift Spending – In the past, we have been guilty of spending more than we should on holiday gifts for our family. This is especially true for our two sons. We like to spoil them but have worked very hard to cut back on buying new toys for them.
4. Hot Water – At times during the winter, I enjoy taking long hot showers or baths. It just feels good, but I also struggle with all the energy and water I am wasting.
5. Preschool Tuition – We pay over $100 per month on preschool tuition for our oldest son every month. We like him to go in order to prepare him for kindergarten next year and for socialization. This is an area that I struggle with as my wife stays at home with him, so we don’t need to send him anywhere. I also remember growing up without ever going to preschool and I turned out just fine!
6. Cell Phones – I have strongly considered canceling my cell phone and keeping my wife’s. My phone is out of convenience only, but I like my wife to have one in case she needs it in an emergency with our two sons. On the other hand, 10 years ago I didn’t have a cell phone and managed just fine, so I struggle with this expense every day.
7. Cable TV – We have satellite tv service in our home. We have a basic package, which is cheaper than our local cable television. Since we don’t really spend any other money on entertainment, we opted for having this service as a form of entertainment.
8. Phone & Internet – I really don’t like the fact that we have cell phones and local phone service. However, in order to get DSL and satellite tv, we need a local phone line. This is an expense that we could do without.
9. 2 Vehicles – We lease one vehicle and own another which is paid off completely. Since my wife does not work, we could get by with one vehicle for our family but we choose the convenience and reliability of having 2.
10. Large Home – When my wife and I purchased our new home earlier this year, we bought a 3,300 square foot home. Because of the housing market collapse, we were able to get an incredible deal on our home and made the decision on purchasing the larger home over a smaller one. This house is way too big for our family and as a result we are paying extra money to heat and cool it, which is anything but frugal.

What expenses do you incur that are not frugal choices?

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