How do I cater to my spending desires while effectively saving?
I do this through a task I call spending management. It's sort of like creating a budget but only for the things I enjoy spending money on.
Try this helpful task:
Take a notebook 📓 and write down literally everything you like to spend money on, on a regular basis (these are not bills, just the things you enjoy spending your money on). This can be dining out, shopping, lunch, books, coffee, or anything you often spend money on every month, outside of monthly expenses.
After you have created this list, next to each item, write down how much you tend to spend on each item every month.
Example:
Mall shopping $200 monthly
Dining out $150 monthly
Coffee $100 monthly
Video games $150 monthly
Monthly Total spent on items I want= $600
Then examine your list and see how you can spend money on the same items but at a lower cost.
Example:
Mall shopping $125
Dining out $100
Coffee $75
Video games $100
"Adjusted" Monthly Total spent on items I want =$400
With this example you can see by cutting back on spending just a little, while still being able to purchase the items you want; there is a savings of $200 that can be applied towards savings, debt, or expenses. 💵
Doing this task can help you become more aware of how you are spending your money and help you gain more control over your finances. It's about spending money on the things you want at a more reasonable yet doable cost.
Find what works for you!
For me it's Starbucks, during lunch hour I would go in 3 to 5 days a week and get my favorite large strawberry refresher for $5.15. That's about $15 to $25 I was spending every week on Starbucks, and that didn't include lunch! So, what I did was find other drinks that were still refreshing but saved me a little more money; and started getting smaller sizes instead of my usual large. Instead of going to Starbucks 5 days a week, I would now go 2 to 3 days a week and in between just have a nice cold water. This is what works for me.
You would find what works for you according to your situation. In my situation you can see how I took something that I often spend money on and made the adjustment so that I still get the things I want every week but in a more affordable way.
Set boundaries on your spending:
I would recommend when adjusting your spending list, adjust it to meet no more than 20% of your income in combination with savings. This can be applying 10% towards savings and 10% towards spending or applying 5% towards savings and 15% towards spending each month. This can even be spending 18% and saving 2%. Whichever works best for your financial situation.
If spending more keeps you from touching the small amount you are saving each month, you are still on a good path because money is still being built, no matter how little it is.
As you become discipline with saving a little, over time you can become discipline with saving more, but the goal is to create the strategy that will help you start somewhere.
It's okay to spend!
Don't be afraid to spend that money. Just be sure when you do spend, to spend smart and spend with a plan. The more you practice that plan the more financially disciplined you can become.🌷
Subscribe and see you on the next blog where I share savings accounts with the best interest rates! To help turn the smallest savings into a big win!
Discipline is key 🗝️
I like the way you break your blogs down. They are very easy to understand and simple to follow. Thank you