What's Important to YOU?

As you examine where your money is going, think about your purchases as falling into two categories—things that are necessary and truly important to you, and things that aren’t. After all, you’ll have more money to spend on the stuff you care about if you stop doling out cash for the things you don’t.

“In today’s culture, we have this idea that we need all this ‘stuff,’” says Joanne Heim, author of Living Simply: Choosing Less in a World of More. “But a lot of it really comes down to: ‘I want this stuff.’ If we recognize the difference and realize we have more than what we need, everything else is gravy. If I can say, ‘I don’t need this pair of shoes; I want this pair of shoes,’ it helps me prioritize and realize it’s something I can live without.”

Take stock of the things you’re buying and which of them truly make you happy. If a purchase doesn’t improve your life, don’t spend your hard-earned money on it!

BONUS TIP: Bottle your own water in a thermos or reusable container. If you don’t like the taste of your tap water, use water from a filtered pitcher or faucet. For each store-bought bottle of water you forgo, you’ll save as much as $3!