It's a new year and most of us use these dark days to swear to do better in the next twelve months. January comes around and after the happy frenzy of the holidays we have to face the reality of our unique financial situations. Regardless of how much we make, we all struggle in our consumeristic culture not to spend more than we make. So in that spirit this post is born.
How NOT to spend.
Step one: STOP. Stop spending, or stop shopping might be more accurate.
Try to go one day without buying anything at all.
Put into perspective what you really need.
Basic consumer needs include shelter, food, clothing, shoes, hygienic staples, water, trash service, heating/cooling, fuel. Next tier would be common sense necessities like cars, bikes, insurance, internet, work related items, phone and so on. After that I would include ongoing education, recreation, and entertainment like books, movies, subscriptions like Netflix, camping supplies, sports equipment, board games etc.
Where is the rest of the money going? Do you actually use or use up everything you have? Do you buy things out of habit or because it's a good deal? Do you keep stuff because it's good stuff? Why?
Access what you have.
It might sound hilarious, but I will get so far behind on laundry that I am convinced that my kids have no clothes. Nothing fits them. I finally do ALL the laundry and magically, I have more clothes than I can handle. So many clothes they won't fit in the drawers. So it seems my problem is not the amount of clothing, it's my habits.
So think about your stuff, how does it serve you? Do you feel duty bound to keep it or would you be better off with something you prefer?
Access your resources.
How can you do it for free? The library has much more than books. They loan music, dvds, toys, audiobooks and more. They offer events and educational lectures. Living Social, Groupon, and Fresno Dealsaver all provide access to deeply discounted offers from a myriad of services. This is a good way to try out new things with half the risk. Do you like to yardsale? Thrift shop? Have you ever even tried it? Do you speak up to family and friends who might have what you need? It's ridiculous the amount of stuff that ends up in the landfills, and there are local groups on facebook, apps, Craigslist and more devoted to person to person exchanges free or otherwise. But don't get caught up in the mentality of this is good stuff, this is a good deal, just for the thrill of the chase. Love your money's buying power, its power to do good, and the space in your home more than the chase.
Set a Limit
On a whole I try not to buy anything that has not been previously decided on before I enter the store.(Additionally, I have an idea of what it's going to cost [and that doesn't mean it has to be the cheapest.]) This doesn't have to perfectly concrete, but I give myself limits to curb my spending. For instance, my limit for purchasing kids t-shirts is $4. Kids rarely wear clothing long enough to wear it out, so the quality of a $4 shirt is not my concern. I buy them at Target on clearance, or online on sites like The Children's Place (on clearance). Most the time we happily accept hand-me-downs and very little goes towards purchasing clothing. Having a cut off can really help with budgeting, along with a nice spreadsheet to document all your spending. Hunt for what you need and be strong enough to walk out of a place if they don't have what you are looking for- don't settle.
Actively Decide
Are you better off purchasing a movie than taking your whole family to the movie theater or is it the experience you want? Actively decide on what and where you will spend your money, don't let whim, sales and product placement be the reason you spend. Spending with a goal to support a specific shop is a worthy goal. Don't depend on retail therapy to make yourself happy, in the long run, self control and being purposeful will make you much more happy- no buyers remorse or hiding from your spouse the fact that your spending got away from you. (The two of you should be doing your finances together and holding one another accountable. We always discuss our purchases [even $5 purchases go on the spreadsheet] with one another to keep track of our finances.)
Focus on Quality
When we NEED something that has nothing to do with whether it will fit next season, I do focus on quality. Confession time: I am a terrible gift giver when it comes to my husband. I don't know why, it just is. So this Christmas I should have gotten him a leatherman. It's a useful, quality item and solid, something he wants, but due to a miscommunication, I ended up on this adventure for a myriad of things that still cost the same (actually slightly more) and added up to a lesser gift in total because of the randomness of it all (a comic book, a Google play card, a surprise miniature etc). They were all things he liked, but if I was going to spend $40 It would have been much better as one solid item- does this make sense? It's like when someone spends $20 on your kid at the Dollar Store when they could've bought your kid a quality doll, set or action figure that was 92% less likely to end up in the trash the next week.
Shop Local
When I shop for gifts in particular, I try to support local shops that I know and enjoy and want to stick around. This will almost always mean it costs more than Amazon, but I know exactly who I'm supporting because I am usually looking at them while they ring up my item at the register. I like to know I am contributing to my community so that my shopping has a cause and paying a little extra is well deserved.
Food.
Food shopping is a whole other post topic and difficult because what you eat has such a life of it's own tied up in all sorts of drama. In some ways though it comes back to the same thing. What basics do you need? Set a limit, access what you have, access your resources (like do you know someone with an orange tree?) and actively decide on what you need beforehand so you are not caught up in the shiny isles around you.
Other advice includes: Don't shop hungry. Buy produce in season. Don't drive all around and spend more on gas to save a few bucks. If you have stores that are part of your routine, learn which ones have the best deals on what you're looking for. I always by wipes and diapers at Target, Up and Up is the best quality for the lowest price I can find and it works well for me. Find your "best deals" and stick to them. Couponing works great for some, but if all I'm buying is food with off flavors I don't even like, then I save more money, effort and time not buying anything at all.
Happy New Year and I hope that your families and spending habits are healthy.
Cheers!
Sarah
