Are you Being Nickel and Dimed to Death?
By: Mentor Nation Podcast
Tags: Podcasting, Mentoring, Mentorship, Mentor Nation Podcast, Podcast

I am John Abbas. I am the host of the Mentor Nation Podcast where we bring world class leaders, entrepreneurs, and people doing interesting things and we get them to mentor you by sharing their journeys, their stories, and their best advice. Think of it like having a personal mentor every week who is there to give you a tip, a kick or an aha moment so that you are more equipped in your success journey.

This is my second blog on this topic. My first one covered the big things that take money out of your pocket, but I wanted to update the blog to cover the small things that are becoming all too commonplace and crazy enough, often go unnoticed by many.

If you follow financial news or pay attention to interviews with many of the great success leaders on mainstream media these days, you will hear a common theme in their message. “The middle class is getting wiped out,” they say, or “The rich are getting richer and the poor are getting poorer.” I have heard these sayings for years but just like most “sayings,” I never really took the time to dig a little deeper into what that really means, and why it’s happening.

About 6 months ago, I set on a path to learn more after something interesting happened to me one day. I own a daycare center in TN, and I usually reserve Monday’s to run errands and do store runs. On this particular day, my first stop was Walmart. At the checkout, as I was about to pay, the computer asked if I wanted to donate to a military charity. I was like “Sure!” And donated $2 to be added on to my bill.

Next stop. Starbucks. I get my usual triple shot of espresso that comes out to $2.91 and without hesitating I leave a $1 tip.

Next stop. The ATM. I needed to grab some cash really quick for a birthday and so as I was pulling out cash, the $4 fee came on the screen. I accepted. I was in a hurry and didn’t have time to drive out of my way to my own bank. ay’s to run errands and do store runs. On this particular day, my first stop was Walmart. At the checkout, as I was about to pay, the computer asked if I wanted to donate to a military charity. I was like “Sure!” And donated $2 to be added on to my bill.

3 stops later. Panda Express. If you have ever been to Panda, you will know exactly what I mean…. Every single time you order, they will ask if you want to round up your purchase for charity. Then it hit me like a ton of bricks…. The combination of these events triggered a thought in my mind. “How much of my money is going to these small, seemingly insignificant charges without me even thinking about it?” I have no problem donating to charity or tipping and I do it all the time, but for some reason it felt like more and more businesses were asking for donations at checkout, businesses where I never used to tip were now introducing it, and it felt like I was being Nickel and Dime to death…

I had an idea…. That Friday, I decided to clear my whole day to go through my bank statements to see where ALL of my money was going. This wasn’t a random idea… 10 years ago, I was making great money but for some reason couldn’t seem to save any more than normal. During Tax Season, my taxes were a mess and I owed quite a bit more than I expected and didn’t have enough on hand to pay the bill. My CPA asked me with a straight face: “What are you doing with the money you are making?” I didn’t have an answer and so he proposed a solution. He told me to carry a little book around for 30 days and write down every penny I spent, no matter what it is or how small the purchase. He told me this would create awareness to my spending and help me decide which things were not important so that I could eliminate them. That exercise literally changed my life and my finances. I couldn’t believe how much I was spending on things without thinking about it.

Fast forward 10 years, it was time to do it again. I spent the whole day looking at the last several months of data, and I realized a very troubling sign…Aside from the big things I am going to share in a moment, the majority of my money was going to things small enough that I didn’t realize it would make an impact. Hundreds of charges for charity, fees, subscriptions, memberships, etc. Then I added up all of the money that went out of my bank account that wasn’t on something for me personally and the answer hit me like a nuclear bomb.

The answer of why the middle class was being wiped out was right in front of me, clear as day. I want to share this information with you so that you can be more “aware” and also to make better decisions moving forward. I have listed 9 things that you need to pay attention to, because they are the most dangerous things that take money OUT of your pocket if you are in the middle class. Ironically, the wealthy use most of the same 9 things to become wealthy (I will cover how in the next blog!). These 9 things are neither good or bad, it really just depends on if they are taking money out of your pocket or putting money into your pocket.

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