A great way to save money!

[cbr shadow]

A coworker of mine knows I've been following financial blogs and has seen some of the books I read so he came over to my desk this morning to show me a great way to save money.

First, he showed me a chart that shows how you can save almost $1400.  The way it works is in week 1 you save $1.  Then week 2 you save $2.  Week 3 you save $3, etc.. all the way up until you've progressed to $52/week on week 52.  You then saved $1378 in your dresser drawer. 
I just shook my head.  I said "If you're able to save $52/week why wouldn't you just start with that much on week 1?  The first month you're saving only $10.. that's lunch at Wendy's".  He used some goofy logic to explain it (I wont get into it).  He makes between $70-90k/yr so there's no reason he couldn't save MUCH more than the $52/week every week.
I went on Facebook later and saw that exact same chart going around there and a lot of people saying they're going to try the method out.  What the hell?

I changed the topic to discuss what he did this weekend and he said he drove 180 miles to pick up cartons of cigarettes (saved $35 per carton, filled his trunk with cartons) and went on to explain all of the money saving in doing that. 
Funny... how much money saving is there in quitting? 

Anyways I just thought I'd rant

[TLV]

I've seen that going around to. I think it's a psychological thing, like the "debt snowball" method of repaying debt starting with the smallest balance.

The really sad part is most of the people that do this, even if they succeed, will then go and spend the $1378 they saved and then some as a reward.

[tooqk4u22]

I changed the topic to discuss what he did this weekend and he said he drove 180 miles to pick up cartons of cigarettes (saved $35 per carton, filled his trunk with cartons) and went on to explain all of the money saving in doing that. 
Funny... how much money saving is there in quitting? 

Anyways I just thought I'd rant

WTF - saving $35/carton - how much do cigs cost? Are there a lot in a carton?  Seriously, if they costs this much, they must be able to save a ton if they quit.

[cbr shadow]

Here in the midwest (Cook county, Illinois mostly) cigarettes are $10 per pack.  A friend of mine smokes and pays this amount DAILY (1 pack/day @ $9-10/day)  I'm not sure how many packs are in a carton, but there is big savings in driving to another state to buy them.  This savings doesn't come CLOSE to the savings of quitting though!  Not to mention the fact that they cigarettes are killing them.

[nofool]

Can I just say that I think that would be kind of a fun challenge on top of my normal savings? Like a bonus challenge? I think this would be a good supplement to an already existing savings plan.

[starbuck]

Standard is ten packs per carton, so if $10 each, then $100/carton. Yuck.

[Lagom]

How about the "I don't smoke" savings challenge? Start setting aside $10/day and at the end of the year, you'll beat the pants off the $1 increment saver! :)

[CookerS101]

I have read one interesting money saving advice and I'm trying to adapt it. It says "Pay yourself first". so every time I receive my paycheck I make sure that I pay myself 10% of the amount.

[sherr]

Hey, ease up people.  Sure, it may cost $9 a pack, but don't forget that it also guarantees you a long, slow, painful death with a practically incurable form of cancer.   The smoker's hack, yellow teeth, and constantly bad breath along the way is another nice touch.

That's why cigs are on my list of things one should NEVER buy: http://practicalfrugalliving.wordpress.com/2013/01/04/products-and-services-you-should-never-buy/ if you're interested...

Not actually true, it does not guarantee a long, slow, painful death. Only 1 in 4 "heavy" smokers will develop lung cancer in their lives (http://lungcancer.about.com/od/Lung-Cancer-And-Smoking/f/Smokers-Lung-Cancer.htm), so even if you smoke a pack a day the odds are still in your favor that you'll never get cancer.

You also forgot to mention the reason that I dislike smoking: it smells bad. It makes you and your clothes smell bad, it makes your car smell bad, your house and everything you own will smell bad. The smoker doesn't notice because they're so used to the smell, but all of their friends do and are just too polite to say anything.

As to the original topic, I think "savings plans" like this are popular precisely because of how easy they are. Most people in the US can save $52 in a week, so they go through this year long process and know that they won't have any difficulty succeeding and in the end can pat themselves on the back on how good they were at "saving" this year.

[destron]

This savings plan reminds me of a lot of "tips to go green" and other nonsense. They are little things that are easy to do to make you feel like you are doing a good job, but the reality is you are not changing your situation at all.

"If you unplug your cell phone charger when not in use, you can help save the planet!" Not really, you might save 1/2 mile of driving your car somewhere doing that for a lifetime. How about you use the same cell phone for an extra year instead?

"If you recycle, you will save the planet!" Not really. All those plastic bottles you recycle, while better than just throwing it away, don't turn into more plastic bottles -- they can only be downcycled. Many of them end in giant waste piles in the ocean or third world countries.

[Jack]

I propose a slight modification to this plan: Instead of adding $1 per week, multiply the amount saved by 2. (So instead of saving $1, $2, $3, ... save $1, $2, $4, ...) That should make it slightly more challenging!

[destron]

I propose a slight modification to this plan: Instead of adding $1 per week, multiply the amount saved by 2. (So instead of saving $1, $2, $3, ... save $1, $2, $4, ...) That should make it slightly more challenging!

Yup. The last week you would have to save $2,251,799,813,685,248!

[cbr shadow]

Just because smoking heavily only gives 1 in 4 lung cancer, doesn't discount all of the other issues smoking causes in your body.  Smokers are more likely to suffer from  heart disease for example.  Taking large amounts of carcinogens throughout the day (literally 20 times/day = 1 pack) every single day severely hurts your health.   
Not to mention that I've recently noticed that I can pick out a smoker based on their looks alone (someone who has been smoking for years).  Wrinkles around their mouth and other parts of face, yellowish teeth, etc. 

Anyways I guess I'm getting a little of topic.  I just thought the "look how much I saved" statement was interesting.

[Self-employed-swami]

I propose a slight modification to this plan: Instead of adding $1 per week, multiply the amount saved by 2. (So instead of saving $1, $2, $3, ... save $1, $2, $4, ...) That should make it slightly more challenging!

Yup. The last week you would have to save $2,251,799,813,685,248!

I'm in for that!  ;)

[sisca]

I propose a slight modification to this plan: Instead of adding $1 per week, multiply the amount saved by 2. (So instead of saving $1, $2, $3, ... save $1, $2, $4, ...) That should make it slightly more challenging!

Yup. The last week you would have to save $2,251,799,813,685,248!

I'm in for that!  ;)

Yeah, you'd be FI in a year, and using just 50 % of your savings, you could singelhandedly save us all from the next debt ceiling debate.

[Skyn_Flynt]

I know it sounds like a gimmick, but it's a path for people who don't make a habit of saving. If it helps some people, then great, I won't criticise.

When someone lives a sedentary life, it's not possible start walking for miles every day. You build up stamina, convince yourself each week or two, that you can walk a little farther. This financial suggestion follows that principle.

However, it's only a crutch. It doesn't help people understand where they spend their money, how to use it more efficiently, etc.

[amyable]

However, it's only a crutch. It doesn't help people understand where they spend their money, how to use it more efficiently, etc.

Agreed...I saw this on facebook, and I actually thought it might be a good activity for a junior high student with an allowance or lawn-mowing / baby-sitting job.  It could be a nice first step to seeing what saving feels like for someone who has never saved.

You also forgot to mention the reason that I dislike smoking: it smells bad. It makes you and your clothes smell bad, it makes your car smell bad, your house and everything you own will smell bad.

Ugh--my college roommate was a heavy smoker, and the smell got in all of my clothing.  I loved living with her, but man, gross, gross habit.

[Self-employed-swami]

I propose a slight modification to this plan: Instead of adding $1 per week, multiply the amount saved by 2. (So instead of saving $1, $2, $3, ... save $1, $2, $4, ...) That should make it slightly more challenging!

Yup. The last week you would have to save $2,251,799,813,685,248!

I'm in for that!  ;)

Yeah, you'd be FI in a year, and using just 50 % of your savings, you could singelhandedly save us all from the next debt ceiling debate.

Swami to the rescue!:p

[jpluncford21]

It's amazing how this country's opinion on smoking has changed over the past 60 +/- years. Crazy how activism, media marketing and education have changed peoples view on something that used to be so cool.

I had a boss that smoked 3 packs of marlboro reds a day!!!! He was a few years younger than me and looked to be about 10 years older. He was terrible with money and usually complaining about a bill of some sort. I tried to convince him to quit multiple times, but I can't imagine how hard it would be to give up that kind of habit!

[cbr shadow]

I know it sounds like a gimmick, but it's a path for people who don't make a habit of saving. If it helps some people, then great, I won't criticise.

When someone lives a sedentary life, it's not possible start walking for miles every day. You build up stamina, convince yourself each week or two, that you can walk a little farther. This financial suggestion follows that principle.

However, it's only a crutch. It doesn't help people understand where they spend their money, how to use it more efficiently, etc.

Good point!

[momo]

Sometimes I think we all have practiced being penny wise and pound foolish. Sounds like cbr shadow's coworker just loves smoking. So much so he overlooks how much MORE money he'd save over his lifetime by quiting. Not to mention the HUGE dividends in the increase quality of his life and relationships. Could it be he does not place a high importance on his life or the people who care about him?