Smart Spending Motivation

[coffeegrl]

I've begun the process of looking at next year's budget and it's going to be a tight one, at least for the first quarter. Doable, but tight. One of the hardest things for me is finding mental motivation to keep myself on track with my budget. It can be so easy to drop a couple dollars here and a couple dollars there. 

So what kind of mental motivation do you use on yourself when you're "in the moment" and need to curb that impulse buy or that thought of "Well, I guess I can go over budget just a little this week,"?  It seems like I always do great for a couple weeks, then something throws me off and it just all goes to Hell in a hand basket. And it doesn't help that January and February are pretty gloomy for me. Crappy weather, no breaks from work unless I take a vacation day, the holidays are over, etc. 

So, what are YOUR mental strategies to help get you through times like this? I'm really wanting 2017 to be a break through year in my money management style!

[Apple]

I sometimes have to do an "is it worth it" mental check.  Is it worth the hours I put in to earn the money?  Is it worth delaying my financial goals.  It does help that I'm very much an "every penny counts" person rather than a "what's a few dollars" type person.  

I also budget some spending money for frivolous purchases.  If I use up what I have for this month, I have to wait until next month to make the purchase.  Sometimes I lose interest by then.

[plugginaway22]

All I need to do is read an article on retirement planning and I panic and feel sure that we are not going to have enough!  Then we buckle down for a few months, but my lifetime priority is travel, so the balance of trip planning and saving has been difficult.  We are mid-50s so the motivation might not be there yet for you.  But when I think back to some of the spending decisions we made in our 30s?? Some stupid but we have NEVER regretted any trip we took.

[rob base]

Take a step back and wait a day or two.....over that day or two think to myself, do I really need that? do I really WANT that? how badly do I WANT that? Do I want it bad enough to trade off for "X"?

I have found waiting a day or two really puts things in perspective and helps overcome impulse buys that I may regret later

[Blonde Granny]

I have the luxury of not having to pay much attention to spending, but I do use YNAB. With the line items I have in YNAB I try to keep spending under the budgeted amounts each month. However, when the urge hits and I'm at a Michael Kors store looking at handbags.....let's just say I have no reason to tell myself no.

I've told many times that I live on SS and DIC from the VA. That more than covers my monthly normal expenses so the money each month continues to grow in the checking account.....hence the spending when I want to. But I can also use that money (and have) for unusual household expenses or unexpected trips to visit my 97 y/o Mother who lives 400 miles from here.

I may try a little harder in 2017 to knock off the extra spending, at least maybe for a month or so.

[dee27]

I do not skimp on buying food, but our monthly food budget is in line with the US average for two people. We do not eat out on a regular basis; in November, we ate out three times. Our cost for entertainment is low since we partake of free/cheap outings. Lately, we have been replacing appliance parts and shoes. DH needs a wide shoe and is really picky about casual shoes. Therefore, it was two years before he found a pair that he liked. We buy most clothes and shoes on sale when something needs to be replaced. Like BG, I seem to collect pocketbooks.

[busymom]

DH & I dug ourselves out of some deep debt. We used several "tricks" to keep ourselves on track. Like, if I saw something I might want at the mall, I'd do the mental math of how many hours of work it'd take me to buy that item. Most of the time, I didn't think whatever it was, was worth all of the hours at work it would take to buy it.

Another trick was to give yourself a small treat occasionally. Nothing huge, but just a little something so you don't feel totally deprived while you're going through the process.

Wishing you success!

[coffeegrl]

Thank you to those who responded! Even though I don’t post anymore, I still enjoy reading everyone’s words of advice and wisdom.



Taking a step back and waiting a day or two is something I REALLY need to work on. Especially with sites like Amazon making it so easy to just click and buy something. Thinking in terms of how many hours I would have to work to buy something is another good trick.



I think the most shocking thing about my finances for this coming year is that I have several thousand dollars less in one of my accounts due to a week-long vacation I took to NYC this past October. Please don’t misunderstand. This was money that I had been saving for the past DECADE and I knew it was going to go bye-bye once I got the final credit card bill in and paid it off. But it’s still shocking to see that money gone. I also knew that, even though I was bookmarking it for my first real vacation in over a decade, if I had a true emergency, I could dip into the funds and just say good-bye to my vacation. However, like plugginaway22, I don’t regret that week in NYC and would do it all over again in a heartbeat. I’m in my mid-30s, so hopefully there will be more nice vacations in the future.



Thanks for the advice!

[cronewitch]

Divide your money into to catagories. The Nut is the amount needed to just live, rent, utilities, taxes, car payment, gas, debt, savings, basic food, medical, dental, hygiene, etc.
The nut is pretty much fixed in the short term and the majority of most budgets. Say you earn 5,000 a month it might mean 4,800 is your nut to get past before you get anything you want.
This leaves 200 for discretionary spending, this is really all you can control. You can pay down debt, buy a lobster, new electronics, fancy coffee drink and impulse shopping. Stopping at the store spending $20 is costing you 10% of your entire spending budget. Not a small percent of your income but a large percent of discretionary money.

[vetswife]

You're doing well for your 30's. In my 49s and 50s I started thinking of everything I wanted to buy in terms of how many hours of work it would cost. It paid off. When my husband had to take disability at age 53and our total income dropped by 60%, we were able to adjust without any problem. Now thrift is just a part of who we are even though we are quite comfortable nearing age 70. It doesn't mean you can't do fun things, just be realistic about the cost.

[Knee Deep in Water Chloe]

With online sites, I also just wait as long as I can before I decide I have to have something. When I'm in a brick and mortar store, I walk around with whatever it is I want and after a few minutes I've usually changed my mind.   Reading a lot of minimalist affirmations helps too

[Tiny]

To overcome the impulse buys - I try keep whatever treat/event is already upcoming that week on the top of my mind...

This also works with curbing some of the endless eating I do (since there always seems to be some 'food' thing making an appearance in a never ending stream).

At the store:  "oooo I NEED this geegaw! it's so awesome!! And I'm running out of geegaw stuff - I'll use it up! I will I will!!!  Wait wait, I'm going out to the show and out to dinner with friends this weekend... This geegaw stuff means I won't have as much $$ for fun in the future.    I REALLY would rather go out to the show and dinner with friends than have this geegaw stuff (and have to stay home, alone, and without any fun).   If I have too much impulse spending I WON"T be able to spend on the fun future stuff I value MORE than the impulse stuff".    And the geegaw stuff usually goes back on the store shelf. 

I start assigning values to 'stuff' I want to buy. And try to only buy the stuff that has the highest value to ME.

Another way to I deal with impulse spending - is to give myself a limit say $5.00 per trip - BEFORE I go shopping.   That way if I really really really have to have some impulse thing while out shopping I can do it - as long as it's less than $5.00.  If I'm hitting multiple stores - and I find an impulse buy at the first store - I can usually talk myself out of it - there might be something better at the next stop.    If I spend the $5.00 now - I won't get that really good thing I haven't discovered yet.      There's a good chance I won't spend the $5 at all... since I keep waiting for the better 'deal'. 

[mamasita99]

I hate waste, so I try to think of something else that I already have that can meet the need of whatever I'm considering purchasing.  I also visualize whatever it is I want, taking up space in my home, requiring maintenance, extra parts, a hanger, care, etc. I try to imagine the "reality" of what I want, realizing that it probably isn't as great as I'm thinking.

  Food and drink, that's harder for me to visualize away because it's instant gratification! That's when "self talk" helps. I'll congratulate myself for making good choices, to sort of motivate me to actually make a good choice. Doesn't always work!

[zibazinski]

My money pits are chiefly my kids and it's my own fault. I try to get a lid on it but have been unsuccessful so far. They don't ask, I do, so it's my fault entirely. I give myself a weekly allowance that should cover everything including my hair that's a monthly expense but by the end of the month, before, I'm charging to my CC because I'm out of cash. That I'm going to work on big time this year.

[Blonde Granny]

I just came back from a trip to Nebraska to see my Mom, son, DIL and 3 grandkids.

Total Costs:
Hotel (1 bd suite) 188.52 for 2 nights
1 Special coffee 2.40
Misc. snack 3.01
Gas 91.33
Lunch with grandkids 35.58
Lunch for me on way there @ Cracker Barrel 8.00
TOTAL: 328.84

I stayed away from the outlet mall where the Michael Kors store is, but did stop in Von Maur (kind of like Nordstroms) and didn't buy a thing.

This is a great way for me to start the year.

[zibazinski]

Dec 31, 2016 8:46:47 GMT -5 Blonde Granny said:

I just came back from a trip to Nebraska to see my Mom, son, DIL and 3 grandkids.

Total Costs:
Hotel (1 bd suite) 188.52 for 2 nights
1 Special coffee 2.40
Misc. snack 3.01
Gas 91.33
Lunch with grandkids 35.58
Lunch for me on way there @ Cracker Barrel 8.00
TOTAL: 328.84

I stayed away from the outlet mall where the Michael Kors store is, but did stop in Von Maur (kind of like Nordstroms) and didn't buy a thing.

This is a great way for me to start the year.

Save for florida

[Iggy aka IG]

To the OP, it's worth it to stay the course.  The reason why I say this is because when I found this board, we were just coming out of the recession, DH and I had filed for BK, and I really had no clue.

Fast forward 6 years later.  Though I have no retirement (yet, which I'll get to below), I have managed to reign in spending, budgeting, and impulse.  The only debt I have besides our mortgage is a business credit card.  I know what I have to spend, and where I spent it down to the penny.  Despite the fact DH and I make over six figures, I still coupon, utilize Wal Mart's Savings Catcher, and avoid wasting food, water, fuel and consumables.

I met with a financial advisor today to expedite retirement funding.  As I referred to my spreadsheets, I was able to tell him exact figures he asked for.  He then told me I am doing everything right.  My course will eventually end at the goal of ultimately retiring and traveling to see friends several times a year.  And you just know it will include a US tour, starting with chiver78, then NoNamePerson and Chocolate Lover, on to busymom, and a few in-between.

Regarding the gloom of winter months:  I find vitamin D helps, in addition to exercise.  Oh, and funny movies. 

So, thank you, fellow SS posters, for your wisdom and input.  I love it here. 

[Blonde Granny]

I was so cold at the VA yesterday that I even had on 2 sets of long underwear. While sitting there the thought jumped into my head telling me this is a great time to buy a new winter coat. A long wool one like I had some years ago. I was even plotting the best place to shop: Dillards, Burlington, TJ Max, maybe even Kohls.

Instead, I drove straight home without making any stops. I'm off today, still sitting here in my robe and jimmies and the thought of spending $300 or so for a new coat has vanished. With the exception of paying a couple of bills, I've not spent a dime on what is actually foolish spending. Day 5 and still no craziness.

[Happy prose]

I had to spend $10 on a co-worker's cake/gift because he's leaving. I really like him, so I don't think it's too wasteful. 

[haapai]

I calculate how much discretionary income I earn per hour of work and then figure out how many hours of discretionary income the item in question is costing me. 

Basically you subtract the Nut that crone speaks of in post #8 from your net pay and then divide that by the number of hours worked in a month.  The person in that example has $200 a month in discretionary income and if they routinely work 160 hours a month their discretionary income is $1.25 per hour of paid labor.  If there are two earners both working 160 hours a month, this number shrinks to 62 cents an hour. 

A five dollar treat becomes much less attractive when you realize that it soaks up four or eight hours of labor. 

[Chocolate Lover]

Jan 5, 2017 14:13:48 GMT -5 haapai said:

I calculate how much discretionary income I earn per hour of work and then figure out how many hours of discretionary income the item in question is costing me. 

Basically you subtract the Nut that crone speaks of in post #8 from your net pay and then divide that by the number of hours worked in a month.  The person in that example has $200 a month in discretionary income and if they routinely work 160 hours a month their discretionary income is $1.25 per hour of paid labor.  If there are two earners both working 160 hours a month, this number shrinks to 62 cents an hour. 

A five dollar treat becomes much less attractive when you realize that it soaks up four or eight hours of labor. 

  Adding up the hourly pay it takes for most things is enough for me. I might be hiding in my closet crying if I did the math that way!

Yay for being on Iggy's tour!!

[haapai]

Yeah, hiding from other people while crying is one of the side effects of using that method.  It works best when you know that things will loosen up significantly in the future. 

[coffeegrl]

Thanks to all who continued to respond!

So far, January hasn't been a spend-y month. I've only paid regular, set bills, and they are what they are, so not much I can do about those. I do have an Excel spreadsheet that I have divided into categories. It helps me see where my money is going and I keep track on there of when I've paid off a monthly bill, so I don't get hit with a late fee because, "Oops! I forgot to pay that!"

Tiny, I am going to start calling impulse buys "geegaw stuff." I love it!

Iggy, like you I have no retirement yet (except for the retirement plan at work, which I have to work for the State of Missouri for 4 1/2 more years before I'm fully vested). One of my goals for this year is to open a Roth IRA. I know I won't be able to max it out, but even if I just put $50 in each month, that's better than nothing. 

Another "trick" I'm going to use this year, not so much to help the impulse buying but to help with my budgeting in general, is I am going to start a list of prices at my local grocery store that I shop at every week. Yes, your cost for some things, like produce, varies from week to week depending on if something's on sale and how many pounds you buy. Since it's just me, usually not more than a couple of pounds of something is purchased each week, or else the produce will go bad before I have a chance to use it up, and not everything freezes well for future consumption. Plus, the only freezer I have is the one in the top of my fridge. But there are some things that have a fixed price and RARELY, if ever, go on sale. So that will help me have a general idea of what I am going to be spending at the grocery store each week, before I get there. And of course, I look at the sale ad for the store each week too and try to buy from whatever is on sale. 

Thanks for the continued motivation!

[Chocolate Lover]

I started a spreadsheet this past year, mostly for tracking purposes. (I can't really call it budgeting when I'm not setting an amount of spending to certain categories.) I also have a page for the bills so I can fill in the spots as I pay the amounts. It's been eye opening in some categories. 

I shop at the same place so much that I can tell you when prices have jumped or sank. And get annoyed and refuse to buy certain things while the price is sky high. Cream cheese once went from 98 cents to $1.92. Yeah, nope. I'll do without. It's currently back down but it'll be back up in no time.

My produce trick, aside from trying to not buy too much, is to use the more delicate things first. If I buy squash and mushrooms and potatoes I know the first couple have to be used in 2 or 3 days and the potatoes can even wait until next week if they have to. I also try to meal plan so I know what I'm doing with that stuff. Not just buying it because it sounded good while I was standing there. 

[busymom]

Your last post, coffeegrl, reminded me of another trick we've used (and still do) when it comes to grocery shopping.  The "sale cycle" here is approximately every 6 to 8 weeks.  So, if something we like is on sale, I generally buy enough to last us that 6-8 weeks.  (And yes, there have been times that my pantry has been packed full of stuff like pasta.)    But, whatever reasonably keeps our costs down, I will do.

[countrygirl2]

My money pit is my motorhome, yeah, stupid and foolish, my one BIG indulgence.

But then DD and I are taking off for a few weeks and spending MORE money, sigh,

but I really enjoy it.

If not for it we would be well within spending limits and likely saving money.

[Blonde Granny]

I stayed home all day yesterday, so no driving and no spending. Instead of still considering a new wool coat, I transferred $250 I would have spent from my checking account to a savings account. I decided this way I win.

I'm also watching how much pointless driving I usually do, and after filling my 26 gal. tank on Jan 1, it has barely moved off the full tank mark. So far, so good this year.

[yogiii]

Jan 6, 2017 12:08:36 GMT -5 Chocolate Lover said:

I started a spreadsheet this past year, mostly for tracking purposes. (I can't really call it budgeting when I'm not setting an amount of spending to certain categories.) I also have a page for the bills so I can fill in the spots as I pay the amounts. It's been eye opening in some categories. 

I shop at the same place so much that I can tell you when prices have jumped or sank. And get annoyed and refuse to buy certain things while the price is sky high. Cream cheese once went from 98 cents to $1.92. Yeah, nope. I'll do without. It's currently back down but it'll be back up in no time.

My produce trick, aside from trying to not buy too much, is to use the more delicate things first. If I buy squash and mushrooms and potatoes I know the first couple have to be used in 2 or 3 days and the potatoes can even wait until next week if they have to. I also try to meal plan so I know what I'm doing with that stuff. Not just buying it because it sounded good while I was standing there. 

This is all the stuff I do and also stock up on sale stuff that will last or that I can freeze.  For instance yesterday those 6 pack box of raisins were on sale for 99 cents.  My kids bring them to school for snacks, so I bought 10 packs.  They will last until they go on sale again.  I'm not paying $1.89 regular price for those suckers!

[GRG a/k/a goldenrulegirl]

I, too, buy in bulk when something is on a true sale, or, better yet, selling as a loss leader.

However, it does require developing a "script" for fellow shoppers who feel the need to comment on a cart full of 10 boxes of raisins/20 pounds of ground sirloin/12 bottles of laundry detergent. Fortunately, most are satisfied with the "I have 2 boys in college" line.

Funny thing is, *I* never look in other people's carts when grocery shopping and would never think to comment on the contents. ((shrug))

[Chocolate Lover]

Jan 8, 2017 15:18:40 GMT -5 yogiii said:

Jan 6, 2017 12:08:36 GMT -5 Chocolate Lover said:

I started a spreadsheet this past year, mostly for tracking purposes. (I can't really call it budgeting when I'm not setting an amount of spending to certain categories.) I also have a page for the bills so I can fill in the spots as I pay the amounts. It's been eye opening in some categories. 

I shop at the same place so much that I can tell you when prices have jumped or sank. And get annoyed and refuse to buy certain things while the price is sky high. Cream cheese once went from 98 cents to $1.92. Yeah, nope. I'll do without. It's currently back down but it'll be back up in no time.

My produce trick, aside from trying to not buy too much, is to use the more delicate things first. If I buy squash and mushrooms and potatoes I know the first couple have to be used in 2 or 3 days and the potatoes can even wait until next week if they have to. I also try to meal plan so I know what I'm doing with that stuff. Not just buying it because it sounded good while I was standing there. 

This is all the stuff I do and also stock up on sale stuff that will last or that I can freeze.  For instance yesterday those 6 pack box of raisins were on sale for 99 cents.  My kids bring them to school for snacks, so I bought 10 packs.  They will last until they go on sale again.  I'm not paying $1.89 regular price for those suckers!

Small stock ups I can do, big ones....I have small money and it's needed other places. My job pays in benefits and hours and holidays, not cash