Advice | Everyday Cheapskate
I got the biggest shock of my life the day I realized that living on a budget wasn’t the straitjacket or rigid “diet” I assumed it would be. It was my life as a credit card junkie that put me in financial bondage.
Living on a budget saved my life because it allowed me to get out of debt. It gave me my freedom. Want to know my secret for staying on a budget for so many years? I splurge. Seriously. And I do not feel guilty. I love nice things, and I love to travel.
Even while I was getting out of debt, I didn’t banish all of these things from my life. In fact, my occasional guilt-free splurges are what helped me stay on a budget. Since I didn’t feel deprived, I found it a lot easier to stick to my plan.
Calculated splurging is not difficult. In fact, I think you’ll find it makes a lot of sense. And the bigger payoff is the financial maturity that comes with delayed gratification. Planning and waiting really does make you more appreciative.
MAKE A LIST
This is the fun part. Think about your splurges of choice. A haircut and color at a great salon? A luxe lipstick? A big-ticket item like a new laptop? Write down all the things you want. Get specific, but don’t worry if you can’t think of everything right now. You’ll be changing this list often in the future. The point is that slowly, one at a time, you will find a way to work these splurges into your budget.
REVIEW YOUR HABITS
Sure, you’ve always used that pricey salon shampoo, but it’s important to ask yourself whether that’s a meaningful splurge or just an old habit. Check the drugstore: You’ll find great brands for a lot less money. Same goes for the grocery store. Do you need a specific brand of canned veggies, flour or cereal? Probably not, so go for the cheapest. Here’s a good rule of thumb: Say no to say yes. In other words, cut back where it doesn’t matter so you can buy the things that do.
FIND THE CASH
Start thinking of ways to bring in a little extra spending money to fund your account. Perhaps you can sell some things online. Determine to spend $10 less at the supermarket this week, and put that money into your account. Next week, make it $15.
Take your coupon savings in cash and add that to your splurge account. When you get a raise or pay off a bill, put some of it into the account. Even a dollar or two here and there will add up quickly if you’re consistent -- all while living on a budget. And when I get money for my birthday or a refund on something I return, that money goes into the account, too.
RETHINK EATING OUT
You don’t have to banish eating out from your life because you’re living on a budget. Just shift your thinking: A meal out shouldn’t be something you grab on the run; it should be something special that requires planning. Keep an envelope with restaurant coupons in your bag. Dine where the kids eat free on a specific night. Instead of an entire dinner at a fancy restaurant, splurge by going just for dessert and coffee. Or go for lunch, which is usually cheaper. Same ambience, less money.
SHOP SMARTER
Stores that carry gently used items are exploding with business these days, and they’re bigger and better than you might imagine. Discover the joys of consignment clothing stores, where you’ll find better quality and beautifully displayed near-new clothing at hugely discounted prices.
Mary invites questions, comments and tips at EverydayCheapskate.com , “Ask Mary a Question.”