Need tips on how NOT to splurge?
1. When you go shopping, go with a list. Only buy things on that list. Do not buy anything not on the list (unless it’s an essential you just happen to forget to put on the list, like toilet paper).
2. Avoid malls, shopping centers, strip malls, outlet malls, boutiques, electronics stores, superstores, online stores, etc, unless you have a list of things you plan on buying.
3. Have a little note or card attached to your credit and debit cards, right on the front, that says, “Do I really need this?” When you get to the checkout, you’ll be reminded and it’ll make you think again. Later, when you remember that the note is there at all, you’ll think about it before you even get to checkout.
4. After you tally up all your necessary expenses, savings, investing, and money for miscellaneous expenses that are more important than new shoes, withdraw the exact amount of money you have left over and keep that in your wallet. This is money you can spend on whatever you want to splurge on– no more, no less. Don’t like dealing in cash? Get one of those re-loadable cards where you put money on it and that’s all you have to spend; no overdraft, no credit.
5. Plan for splurging. If you know you like to have new clothes, budget to buy one new item a week. Like to travel? Plan on saving the money each week to take a small or big trip in the next six months. Like to go out to eat and drink? Budget for one meal or two nice drinks out a week.
Remember, there’s no need to live so frugally that you feel like you’re not enjoying life, but pretending you have money to burn on the fun stuff when you’re barely able to keep the lights off is a dangerous and equally un-fun way to live.
Questions? Let’s hear ’em!