Christmas is over, the January sales are over, and credit card bills are starting to arrive. It’s time to start thinking about saving not spending.
Your New Year’s resolutions might have included financial goals, or you might be looking at your statements wondering how you got here, and (hopefully) how to avoid this situation next year.
Like any other “new” thing, it will take time to find it’s place within your view of the world, so while I wrote about this earlier, here’s some more suggestions on managing that.
Vision
Last time I glossed over the vision, but I still think it’s useful to do them. To make the time to really think about your why.
For me, it’s not just about avoiding the so-called bill shock, but also to think more seriously about my spending. To make sure that every dollar is spent fruitfully.
At the same time, to have a little money socked away to be in a position to buy big ticket items when I need them, as well as take advantage of other promotional deals.
Not to mention, a feeling of comfort knowing there’s a little bit put by for the proverbial rainy day.
Goals
It’s not my intention to set aside a particular amount each month (though I do that too). For me, it’s more about thinking it through, and not actually spending money on things I don’t need or want. To have, and use my power of choice rather than getting carried away.
Priorities
Way back in 2019, I mentioned setting up a decision making structure based on my priorities in life. At the time, they were:
- Family (husband and Clever Girl)
- Health
- Writing
- Business
And looking at them again, I can’t say there’s anything I’m inclined to change.
The point being, they form a hierarchy of a sort.
So if I get the mad idea to buy something, I should first consider whether the proposed expenditure will contribute to these priorities.
So, a nice trip to Bright, might contribute to priorities one and two, but a nice box of Godiva chocolates is a harder ask.
In the same vein a nice box of Blackwing pencils could conceivably contribute to priorities three and four, but a box of cheaper pencils might be a more appropriate spend.
Cost cutting
I sometimes think we get a bit carried away with cost cutting, which is one of the reasons our financial goals so often fail.
We’re not usually clever enough to know what we should cut back on, and what we should spend more on.
Cash or Card
Since Covid, we often use cards to pay for goods. Using cards rather than cash makes it very easy to spend more than we’d planned.
Here in Australia, we also pay surcharges for using cards which are added to your bill and deducted from your account without your express knowledge. Not only that. they aren’t always added to the bill.
So while paying with cash makes it easy to manage spending because you literally cannot spend what you don’t have, it can also result in discounts. Particularly when buying more expensive items.
Food
When it comes to health, we should definitely cut back on processed food such as manufactured meats, cakes, biscuits and chips, while spending more on fruits, vegetables and legumes. Though I acknowledge eating healthier also requires more time spent thinking, meal planning and cooking.
Processed food often lasts longer on the shelf than fresh food, and it can seem a waste to discard fresh food which has past its best. Except fresh food can be composted, and processed food wrappers often can’t even be recycled.
Clothing
Clothing is another thing we often change our spending on, buying multiples of cheaper, less durable clothing rather than less, but higher quality items. There are, of course, people who need the variety, but if you’re trying to spend less, having more t-shirts than you can wear in a year probably isn’t the way to go.
Clothing made from natural fibres can also be composted, while synthetics cannot. There are very few companies that recycle synthetics, and even fewer that remanufacture with them.
Car vs Public Transport
It’s probably controversial to suggest using more public transport, especially given the seeming inconvenience of it. Particularly is you’re in a place where the services aren’t good.
But the fact of the matter is cars cost a lot: fuel, maintenance, and parking, whereas public transport just costs the fare.
Plus, public transport gives you the opportunity to relax and read books, read and send texts, or give your full attention to podcasts. You can even get out your laptop and get a jump on the work of the day. Best of all, in my opinion, by the time you get home, you’ve lost all the pent up aggression from the day, and can be a loving spouse and pet owner.
Hopefully, while you’re driving, your full attention is on the road.
Luxuries
A lot of the products and services I take for granted, were luxuries for my parents.
They just weren’t available so they didn’t waste any time or money on them.
And when they started becoming available, they didn’t have the habit of consuming them. Only on very special occasions, treated with due ceremony. Like the Godiva chocolates I’m so flippant about.
I’m pretty sure my father died without ever having eaten a hamburger at a restaurant. Or made one himself for that matter.
And I’m pretty sure my mother never had a manicure at a salon, she always did her own nails.
So, perhaps now is the time to reconsider making your staples into luxuries again.
Choosing saving not spending
So often our choices are automatic and unconsidered.
In many ways, saving not spending is a choice.
Not always easy. Never automatic.
It can become a habit, but an easy way to start saving not spending, is by not shopping at all.
Find a new leisure activity that doesn’t involve shopping.
Don’t visit your favourite sites, and don’t go into stores, unless there’s something in particular you need.
To make it harder, take your credit card details off your preferred shopping sites so you have to find the card before you can use it. Don’t cheat by writing it down or storing it need your computer.
Decide you’ll pay cash for your discretionary shopping. In person.
It’s not forever.
You can review your spending in a few weeks or months, and decide whether you want to keep going or refine it.
But one thing’s for sure.
Nothing is going to change unless you change it.
Just a little reminder, you can read other relevant posts on the Holistic Personal Finance page.
Holistic Personal Finance
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