A new way to curb mindless spending

[Shift]

I was going over my spending for last month and made a startling discovery. I'd mindlessly spent $440 on eating out! It's easy to see how I got there... Carrying around a debit and credit card, swiping them whenever the need arose.

That number really bothered me and so, I did something drastic. I inflated my monthly eating out budget to $440. I literally drove to the bank and withdrew $440 and put it away in my desk.

I know myself quite well and I know that I'm motivated by consequence and pain. Every time I want to eat out, I will be reminded of how much I spent the month before and how awful that felt. The goal is to have some of that money left over by the end of October.

Since the budget I've given myself is insanely high, I've also worked in something else. Whatever is spent from that budget this month, will become my budget for next month. As long as it's painful, the spending will go down. Eventually, the budget will balance at a point I'm comfortable with.

This method should work for pretty much any mindless spending, including clothes, games, movies, alcohol, books, ect. If you find yourself absolutely disgusted by what you spent in the previous month, make that your new budget. For extra pain, do it regardless of whether or not you can afford it. My inflated eating out budget is going to make this a tight month but so be it. I could afford it last month, so why not now?

[Clint Cora]

I think a lot of people need to view their credit cards differently if they always find themselves in debt. I've been a credit card user since 1983 or so and I have never had to pay any interest. I think credit cards are great for their convenience and the fact that they can be used as free 30 day loans. Plus I try to put everything on my credit cards so that I rack up the frequent flier points.

However, having said all this, the best way to approach use of credit cards is never to make any purchases that you can't do with cash on hand. I always pay off my full balances each month which is why I've never had to pay interest since 1983.

But I love the airline miles and hate carrying cash around. That's why I use credit cards. If you view credit cards as vehicles of convenience rather than loans, you won't get into financial debt as much.

[lifetimelearner]

but I don't want pain associated with my money !

I like a different approach Guilt-free Budgeting: Setting Up a Budget With No Blame, No Shame

[Shift]

Originally Posted by lifetimelearner

but I don't want pain associated with my money !

Lol, I'm glad you have something that works for you I'm an away-from motivator so pain with my money works well.

Clint, everything you said makes logical sense. Unfortunately, there's a lot of psychology behind money that tends to derail even the most logical of statements.

[Clint Cora]

Originally Posted by Shift

Clint, everything you said makes logical sense. Unfortunately, there's a lot of psychology behind money that tends to derail even the most logical of statements.

I understand. In many ways, one must adopt a mindset that is currently the opposite of what most friends, relatives and peers are doing with respect to money. Many people do not think of money in a longer term basis but focus instead on short term gratification from what can be purchased.

History has proven over and over again that the chronic spenders and short term thinkers in money will always end up tight. Longer term thinking will result in more comfortable lifestyles. We all have these choices. Just get educated on the ways of wise personal finance and implement some useful tactics to secure financial future.

Again, most people will not be doing this so the psychology involved will have to involve a bit of 'against the grain' attitude.

[Shift]

Yep, exactly. I've found it difficult in the past to look away from the short-term and focus on the long-term. The solution for me is in these little tricks and mental barriers.

Every time I'm at the bank, I get laughed at for having twelve accounts. It's part of my budgeting structure that allows me to pay myself first. I spread my message as much as possible

[Fred Tracy]

Lol, I find the painful approach you're taking to be amusing, and no doubt effective.

Truth be told, I spend too much on eating out too. Maybe not $440, but definitely more than I should.

[SlicK]

This focus on spending less has never been productive for me. Focusing on earning more took care of my mindless spending problems.

[Lioness]

I am also motivated away-from. There's no greater impetus for me than getting fed-up and angry at a situation. I just wish I were more proactive than reactive.

I had gotten lazy, buying my lunch and snacks out everyday and paying cash for public transit instead of getting a discount pass. When over $20 vanished in one day i put my foot down. I literally ran to the depot before they closed to buy a pass. And being too tired to make my own lunch at night doesn't cut it anymore.

If you drink soda, juice or bottled water daily, it's criminally expensive to get it from a machine or convenience store instead of getting 6-packs or cases from the supermarket. For coffee and tea, I'm getting a thermos and making my own. A couple of extra dollars here and there really adds up over the weeks and months.

[danthony]

At least you're spending cash which you feel. Why many people go over budget is the use of too much plastic which gives a fake euphoria of what you actually have to spend.

[Shift]

I've had a couple of episodes since pulling out that cash that I've considered eating out and it just isn't happening. I'm too attached to that money.

A new challenge has appeared on the horizon: I'm still prone to swiping my debit/credit cards. Not that I've been out of control but the mindless part is still there. I wonder what it would be like if I were to "accidentally" destroy my credit card and debit card? Might make for a fun experiment.