Saving Savvy

 

cautioned us again, while trimming Tom's bangs at a record clip.

"I have one question, Roy, and once you've answered it, I promise I'll get these two guys out of your hair."

"It's a deal, Cathy."

"Why did you used to recommend to people that they keep track of every dime they spent? That's a lot of work. Is there really any benefit? I mean, what can you do about money that's already gone?"

"The reason I advocated, and still advocate, keeping a detailed household financial summary is that it can be very informative. If you don't believe me, try it. Keep a detailed summary of all of this month's expenditures.

"A couple of years after I took over the barbershop, I borrowed money to buy a new car. When I summarized my expenses at the end of the year, I couldn't believe how much of my income was spent on my vehicle. Financing costs, gas, insurance, upkeep—close to a third of my after-tax income hit the road with my car. It was clear that, although I could pay all my car-associated expenses, I couldn't truly afford the car I was driving. It required too many other sacrifices. So, I sold the car and bought a good secondhand one—or a 'previously owned' one, as they like to say now."

"I've never done a 'household financial summary,' as Roy calls it, and I never will," James Murray smirked. "A friend of mine did one, though, and I have to admit that he benefited from it. He went into shock when he discovered that, over a twenty-two business-day period, he had spent two hundred and fifty dollars on lunches. That could add up to three grand a year! Needless to say, he's occasionally brown-bagging it now," he laughed.

True to her word, Cathy began to usher Tom and me