Mrs. Picky Pincher is the money-saving maven and blogger at Picky Pinchers. She writes about living the good life while paying off $250,000 of debt.
(Editor Note: She’s a spunky cutie blogger and has the best foodporn around. If you don’t check her out then you’re a tumbleweed ?)
The story of David and Goliath. Ahhh, it’s the time-tested story of the big guy versus the little guy. Goliath is a big dude who bullies people around, and David is an itty-bitty beanpole with a slingshot and one hell of an aim. Which would you find more threatening — the big dude who could crush you with one fist or the little guy with a projectile weapon? I think you’d see a good split of people afraid of either the big guy or the little guy.
This same approach can be applied to personal finance: should you reduce big expenses or smaller, recurring expenses?
Which is more deadly to your financial goals: your rent or your Blue Apron subscription?
Cutting Small, Recurring Expenses
Cut it out completely
Make it at home
Cutting Large Expenses
Cutting the big two: housing and transportation
The key to cutting large expenses
The Bottom Line
Editor Note: I’m not trying to stir the pot in any direction but I do have two observations to add. #1) Big expenses by themselves are usually few and far in between. The top answers for cutting big expenses are a person’s residence, car and…something tells me the cost of childcare is pretty high on the list as well. After those are trimmed, there’s no singular giant leap in savings. You have now got a bucket of smaller expenses. #2) The small expenses are numerous. They’re sneaky as anything feeds off the habit and very often a recurring thing.
So, in essence, we’re dealing with two dudes here that have completely different modus operandi.
I’m wondering if the level of debt is a factor in how one should approach this. On Instagram, I observe my fellow debt freedomists under $20K in debt cut back “the latte factor” style without much urgency whereas freedomists with over $100K in debt (and naturally more urgency) try for the scorch Earth method – or in their hum – Gazette Intense.