How I Inspired a Colleague to Save $300+ Each Month

I recently experienced the joy of inspiring someone to make a positive financial decision.

I work in an office with approximately 70 professionals. They range from school psychologists and social workers to educational administrators and attorneys. It's common to find colleagues discussing work or other matters at any given time, as is the case in many offices.

One of my colleagues—let’s call her the Psychologist—and I have worked together for the past six years. She and I will talk frequently about work, travel experiences, weekend plans, future plans, etc. A few months ago, we started discussing financial milestones as we’ve worked for the same public sector agency for eleven years.

Our conversations have recently centered on finances and goals for the future. I told the Psychologist my goal of retiring within five years and my plan for accomplishing that. She told me about her recent financial moves, which led to her purchase of a co-op in NYC, and offered some advice.

In one of our conversations, we were discussing physical fitness and our respective workout routines. The Psychologist informed me she was paying $300+ per month for a gym membership.

I was completely and utterly surprised.

The conversation went something like this:

Me: "$300?!? The most I paid for a gym membership was, maybe, $75 per month, and I canceled it because every time I went to the gym, it was always so crowded. I'd go and end up using a treadmill. I can run outside on my own."

The Psychologist: "Yes, the gym I go to has excellent facilities, and every time I go, it's always a positive experience. However, I haven't gone lately."

Me: "Wait a second, you pay $300 per month for a gym membership you don't even use? When was the last time you went?"

The Psychologist: "I went one or two times over the past three or four months."

Me: "Why don't you cancel the membership and save that $300 per month for one of the trips you want to take? Don't you want to go to Africa?"

The Psychologist: "Yeah, but I like the experience I have when I go to the gym."

Me: "But you're not going. If it were me, I'd cancel that membership and invest $300 monthly."

I then went on to tell her about one of my biggest financial regrets, which still bothers me.

In March 2020, because of the Covid-19 pandemic, the federal government suspended payments on federal student loans. I no longer had to make a $550 monthly payment on my student loans.

Instead of saving or investing that $550 per month, I paid off credit cards, purchased stuff I didn't need, took a cross-country road trip, and traveled to Europe.

It hit me when my federal student loans were forgiven in July 2022.

If I had saved or invested that $550 per month from March 2020 through July 2022, I would have saved or invested a total of $15,400!

I still could've paid off credit cards and traveled. Those activities were not dependent on having an extra $550 per month.

I explained all this to the Psychologist.

Sometime later, the Psychologist stopped me dead in my tracks when she told me, "You know Matt, I have to tell you: you inspired me."

Our conversation, all but forgotten, I replied, "I inspired you? How?"

The Psychologist: "What you told me about your student loans. I canceled that gym membership. I will use that money for some small home improvement projects and then build up my emergency fund."

I tell this story because I never thought I would ever "inspire" anyone to make a positive financial decision.

The moral of the story: audit your finances.

Here are some thought-provoking data I found online:

• A third of consumers underestimate how much they spend on subscriptions by $100 to $199 each month.

• 42% of consumers forget they're still paying for a subscription they don't use.

• Up to 67% of gym memberships go unused.

Key takeaways:

• Audit your finances.

• Stop spending money on services you do not use.

• Use that money for your long-term financial growth.

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Sources:

What Percentage of Gym Memberships Go Unused?

Consumers spend an average $133 more each month on subscriptions than they realize, study shows.