A publisher sent me a copy of awhile ago. The book's philosophy is that it's not the "latte factor" (small amounts of) spending that kills people, but the big items. That's why they focus on the five BIG ways to save. Here's a summary of what they suggest -- contrasting small spending to their "better" suggestions:
- Houses: You can buy low-flow showerheads and save $5. Or get a fast flow mortgage and save $103,536.
- Cars: You can save $9 a month by inflating your tires right. Or save $31,279 by choosing the right car.
- Credit: Going to your own bank's ATM will save you $3. Calling your own bank could save you $1,272.
- Groceries: Packing your lunch will save you $7 a day. Shopping strategically for those lunch fixin's will save you $7,904 a year.
- Healthcare: You can save $75 a year by canceling your magazine subscriptions. Or save $6,350 a year by choosing the right medical prescriptions.
I haven't read the book and probably won't (since it doesn't sound like there's a lot of new news here. But I wanted to make some comments on the items above as follows:
1. Saving money doesn't need to be an either-or decision. You can save on BOTH big-ticket items as well as "small" spending. If you can manage them both, you can save more than only focusing on one of them. Besides, small spending opportunities happen much more frequently, and as such are not inconsequential.
2. I'm guessing that their mortgage savings is based on early pay-off of the debt. Novel concept, huh? Wish I'd suggested it. ;-)
3. I'm still wondering how I can save $7,904 per year on groceries when my budget for them is less than $5,000 a year. Maybe government math at work?
I've heard of all these ideas so I don't think there's much here for me. How about you? Anyone out there read/seen this book? What did you think of it?