How to “only” yourself to death.

The word “only” has been a good friend of mine. I’ve used it to justify a lot of dumb expenses in my life. I say things like, “Hey, adding HBO and Showtime to our satellite package is only $22 a month.” And I don’t think about how that’s really $264 a year (plus tax)!

It’s so easy to see that easy, low monthly payment and “only” yourself. And when you have a lot of “only” payments, pretty soon you’re looking at your bank account and wondering where all your money went.

I did a quick inventory of my current “only-ies” and calculated I’m spending $316 a month! That’s $3,792 a year that’s going out the door…a few bucks at a time. Yikes! Where’s that money going and how can I get it under control?

To clarify what an “only” is; it’s a payment for something that’s really nice to have, but is ultimately non-essential at the end of the day. We gotta’ pay our electric bill. The satellite TV bill isn’t necessary to living, it’s just nice. It’s an “only” expense (ditto for items on store-credit, or credit cards. I’m looking at you new room-full-of-furniture!).

Here are some of my “only-ies”:

Cell phone bill? Yep, going to keep it. True, I could live a completely fulfilling life without a cell phone, but it’s just so darn convenient (We have decided to look into pay-as-you-go options when our contract is up because frankly the wife and I just don’t need thousands-of-minutes a month).

Virtual fax line? Yep, I’m keeping that too. I don’t get personal faxes every day, but when I do it’s a pain to coordinate getting them at work or hooking up a fax machine at home for a few hours to receive one. Plus it’s less per month than a separate phone line at home for a dedicated fax machine.

HBO & Showtime premium channels? Nope! There are a few shows on HBO that my wife and I watch, and they’re all off until next season so….canceled! (We’ll decide if we’re going to resubscribe when our shows come back)

Super-duper-all-the-channels package on satellite? Nope! We sat down and scrolled through the channel guide and found out that we regularly watch ten channels; our 4 major locals plus TLC, Discovery, Food Network, Comedy Central, HGN, and A&E. To our pleasant surprise all of those channels are in the very lowest-level package our provider offers. Move over $90-a-month TV, here comes $40-a-month TV! Sure, we could probably cut paid TV out entirely, but we both like it so it stays - for now - at a much lower monthly cost (plus there is never anything good on these days anyway!).

Netflix subscription? Tough call - I’ll need to do some number crunching on this. When I first subscribed, I was a movie-watching-fool. I would get a movie on Monday, watch it, mail it back Tuesday, get a new move on Thursday and do it all over again. I calculated my first month I paid about $0.80 per movie. However as I moved through my list of to-watch flicks, I’ve slowed down a lot in my movie watching habits. For the last two months it’s cost me $6 per movie to be a subscriber! Sorry Netflix - I love you - but you’ve got to go.

Some quick Excel work tells me that by cutting out and cutting back we dropped our “only-ies” from $316 per month to $191 per month (and a lot of that is cell phone). That’s a 39% monthly savings or $1,500 a year back in our pocket.

We’re fortunate that we’ve kept a lot of our “only-ies” under control, but I know a lot of people who use credit, same-as-cash deals, and store financing to get new appliances, electronics, furniture, and more - all for “only” a few bucks a month - and it’s killing them!

I encourage you to sit down and take a long hard look at your “only-ies”. You might be surprised at how much your “little monthly obligations” really cut into your bottom line when you add them all up!

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• Success is spelled with 4 S’s
• Don’t plan yourself to death.
• SuccessMinders Interview: Azher M. Khan

January 24th, 2008

Entry Filed under: Tools, Money, Habits