Trimming the (Money) Tree
Newsletter Vol. 4 Issue 11
In our music room that we affectionately call the Bamboo Lounge, we have a money tree. The space is donned in various shades of green with gold and rose accents. The space gets its name from the paint color we used, “Eastern Bamboo.”
With its verdancy and long-leaves, I have sworn to keep this tree alive as some sort of confirmation that I have not lost track of my money moves. As you may well know, money trees are a type of Chinese holy tree that can bring money and fortune to the people. A symbol of affluence, nobility, and auspiciousness, money trees can be traced back to primitive societies when the adoration of a holy tree was prevalent. Today, we are going to trim this proverbial money tree. Think of this exercise as a gift guide for yourself and your family.
Towards the close of each year, I look at my line items expenses to see where I am overspending and where so can save money. Promotional expirations, annual fees, and changes in service terms can add hundreds to your budget at a time of year that is notoriously expensive. What follows is a personal financial autopsy on common line items that can really add up:
Phone: a lot of people get locked (literally) into a service provider because they make installment plans on an expensive iPhone. Once you pay off your phone, consider switching to Xfinity or Mint for monthly fees that are way below normal market rates. Be sure to have the company “unlock” your phone before moving to a new service provider. I am switching from ATT to Xfinity. Annual savings: $480
Internet Provider: Unless you are running a gaming convention out of your home, your streaming speed is likely overwrought. Call your internet provider and downgrade your internet speed to something that matches your online surfing and streaming habits. Annual savings: $360
App Subscriptions: Most app subscriptions have automatic annual renewals whereas the show apps (HBO, CNN, DISNEY) can usually be canceled immediately. In order to make sure you aren’t paying for apps you no longer use or, horrifyingly, paying for multiples of the same app, (I once had three active Netflix accounts). Annual savings: $220
Here are some personal ways I shook the money tree this month:
Costco: I was not using it much and my eldest is no longer in college, bulking up on inexpensive carbs so I ditched it. Annual savings: $60
PDF Filler: this is a nice service for signing and sending documents but I have found it’s just not needed in a way that can justify the price. Annual savings: $119
Annual Fee Credit Cards: we often sign up for the welcome perks (miles and points) and then forget that the annal fee is not going to justify the spend. I keep an xls spreadsheet of all my fee-based cards and cancel them before renewal time. I got rid of all but two cards: Amex Platinum ($795) and United Explorer ($99).
While $894 may seem like a lot to shell out, I easily enjoy well in excess of this dollar denominated value including points acceleration, free hotel stay, $100 hotel experience credits, free NYT, $120 in free items from Saks Fifth Avenue, insurance that covers all of my purchases, and that free lounge food and drink. Annual savings (after card fees): $1080.
Finally, there are services you can buy to make sure you aren’t paying for unnecessary purchases, but a free way is to go through your bank and credit card statements each month. Any discrepancies, fraud, or redundancies will be glaringly apparent.
Adding it all up, I will be saving $2319 next year. That’s enough for a nice vacation or invested at 8% over the next 20 years, a tidy $10,855.37. Whatever you do in the weeks ahead, hopefully while in your pjs eating delicious leftovers, I hope you’ll give your money tree a good trim. Happy holidays.
_________________________________________________________________
What I’ve been up to this month:
Reading: Second Class; Free Women, Free Men
Cooking: conveyor belt chicken, hearts of palm gratin, pizza
Watching: Gilmore Girls, The Resident, The Diplomat
Listening to: Dark Academia, Noga Erez, Being Well
Traveling to: Tulum, NYC, (in 2025) PSP