You may be thinking about giving up those little daily indulgences as the cost of just about everything continues to soar thanks to rising oil prices.
North Americans are carefully considering the so-called "latte factor" now that their daily coffee and croissant from the café are costing more and are in turn eating up more of their monthly budget.
Starbucks reported a serious drop in sales last month and Coca-Cola is also anticipating a lull.
The economic shift is prompting many to take a few extra steps to save some cash, including bringing a lunch instead of buying it, brewing coffee and tea at home before work and toting tap water to the office instead of buying a bottle.
It may also mean spending a vacation close to home as opposed to jetting off to an international destination or choosing public transit and leaving the car in the garage.
The high cost of everyday items, including bread, eggs and fresh fruit is forcing many people to ditch the fancy coffees they love. On Thursday Canada's inflation rate shot up to 2.2 percent. According to Statistics Canada the 0.5 percent hike was the biggest since September. The inflation rate also jumped by a percentage point from April to May, which was the highest increase since January of 1991.
While price increases are prompting North Americans to carefully watch their spending at the grocery store and in other places, high energy costs have had a
devastating impact on developing nations already struggling to feed their populations, including Haiti and Sudan.
Environmental woes haven't urged many Canadians and Americans to conserve, but a serious hit to the bank account appears to be changing wasteful ways.
"Unfortunately, pain is required for change. The pain of the uncertain economy, of gas prices and food prices, is becoming an important reality check," Sheryl Garrett, a financial planner based in Shawnee Mission, Kan. said.
Here are some tips on how you can change your wasteful everyday spending habits, courtesy of the Associated Press:
- Use cash instead of credit cards. You'll be more aware of how much you're spending.
- Don't be afraid to buy second-hand goods. Used books, clothes and accessories can often be found online in good condition at a fraction of the retail price.
- Check cable, cellphone and banking statements for any services you may not need or even know you have.
- Shop around for better rates when your cellphone contract is up.
- Go online to comparison sites before making any big purchases.
- Learn to cook and rely less on eating out. Eating just a few extra meals a week at home can add up to significant savings over time.
- Try activities that don't cost money; hiking, card game nights, borrowing movies from the library, etc.
- Take your own snack/lunch to work.