Hi, friends! Today I’m sharing 5 tools/strategies that helped me to achieve my budgeting goals this month. Ones that you can implement NOW without much effort on your part. If this past month has taught me anything, it’s that preparing for success is one of the most important factors in achieving your goals. And these next 5 strategies are a great start for anyone interested in reigning in their shopping/spending habits in the new year. At the heart of these five things, is the mindset to become more aware, critical, and intentional with where your money is going. So let’s get right into it!
1 | Write every single purchase down.
Track exactly where your money is going. Become aware and physically acknowledge every time you trade money for goods. Small purchases here and there don’t seem like much, but they ADD up over time! Just look at how much I saved in the month of January by not purchasing impulsive things.
I write down every purchase I make in a small notebook I carry with me. However, I also track my expenses by category in an Excel spreadsheet on my computer. It’s not necessary to do both of these (or either of them!), but find a method that works for you. If it’s easier to track purchases on your phone (because you typically always have it on you), try using the Every Dollar App developed by Dave Ramsey or even just a blank note page. Getting in the habit of documenting every purchase makes you aware of how often and how much you are spending over the course of a month. Never again will I question where my money went. I know exactly where it went!
2 | Use cash envelopes to limit spending.
At the beginning of each month, budget a certain amount of money to the categories you spend in—like groceries, entertainment, style, miscellaneous, travel. Put that exact amount of cash in an envelope dedicated to each category. Only spend what you have in each envelope and track your expenses on the outside of the envelope so you know how quickly your money is being used up. The important thing is to start with a certain amount and to feel the loss of trading money for goods every time you make a purchase. Using a credit card does not give you the same feeling of loss as cash because you’re not physically losing anything. (In fact, they give you your credit card back, so you probably feel like you are getting more when in reality you are losing money.) Tying in your spending habits to a tangible trade makes spending feel more real.
3 | Talk your purchases out loud.
Sometimes trying to defend your purchases out loud can help you to realize how ridiculous the logic in your mind is. Why do you just have to have that leopard sweater when you have a closet full of perfectly good sweaters already? If talking to yourself seems strange, try instead talking your purchase out with someone else. For instance, I try to involve Allen in my purchases when I might be succumbing to marketing gimmicks or social media pressures and have him ask me the tough questions I don’t want to ask myself. Sometimes having a different perspective outside your own mind (where, let’s be honest, everything makes sense to you) can show you that you don’t really need that new thing.
4 | Reward yourself for progress with something other than shopping.
It can be really easy to justify treating yourself with a small purchase when you’ve done so well on your budget. You think, “I saved so much money last week, so what’s a small $20 purchase here to treat myself?!” Trust me, I get it. But try thinking of other ways that don’t involve spending money to reward yourself. For me, I LOVE tracking my budgeting progress throughout the month using stickers! I know, I’m three years old haha. But in all honesty, I’m very visual, so being able to see all the great progress I’m making over the course of a month has been very motivating. Not to mention the daily joy of “earning” a new sticker to place in my 30-day grid each morning. It’s something so small yet so impactful and helps me to see that even if I “mess up” one day, my success (or failure) is not determined by a single mistake. I can see my progress the whole month and know that I am changing my habits for the better, even if a mistake or two happens.
5 | If all else fails, take it one day at a time.
Often times we talk ourselves into purchasing something because days, weeks, months seem just too long to wait. What if it sells out?! What if the sale price ends?! I just have to have it NOW! But if my experience of tracking my “almost purchases” over the month of January taught me anything, it’s that most things we think we need don’t end up making the cut at the end of the month. I understand that this knowledge is found in hindsight, and in-the-moment purchases don’t seem so easy to ignore. Trust me, I get it! My recommendation? Wait just one day. One day. Odds are the thing in question will not have so tight a grip on your desire the next day—even if it’s just by a teeny, almost indistinguishable amount. And even just one day can provide you with enough time, space, perspective, and perhaps the slightest hesitation to make a more informed decision on the purchase.
Separate yourself from the item in question and the triggers that got you there for just one day and see how it goes. Prove to yourself that you can survive just one day without this thing. Heck, you’ve made it this far! And maybe, just maybe after one day, you decide to take another day to think things over. And you build up to waiting a month from there. Sometimes reframing the pause and taking it one day at a time is much more manageable than thinking about the long waiting haul ahead and can keep you from purchasing things on impulse that you won’t end up enjoying anyways.
What about you? What tools help you to stay on budget?
You might also like…Why I’m Budgeting This Year and January Budget Update.
Photos by Noah Berg
No Comments