Discardia_ More Life, Less Stuff - Dinah Sanders [78]
Know where your money is going. Are you going deeper into debt or are you paying it off? How have you set up your tax withholding? If you had to pay a huge amount at tax time and your income hasn't changed much, maybe you should increase the withholding to spare yourself the scramble for the money. Did you get a huge tax return? How about lowering that withholding and setting up an automatic transfer of that cash difference into a retirement account? You won't feel the change throughout the year and your money will be earning you interest instead of the government.
Balance your checkbook and credit card statements every month. This practice will keep you aware of any trends in the flow of your money, as well as giving you the ability to catch bank errors or identity theft while there's time to do something about it.
My financial security rule of thumb: If you are carrying debt with over 6% interest, you should stop using your charge cards and cut optional expenses to the point where you can make significant payments on it every month. Try paying one-tenth of the current balance owed this month if you can, and keep paying at least that dollar amount each month thereafter. That will rid you of that debt within a year.
Bring in more money and spend less
As with so many things, the key to improvement is to change the inflows and outflows.
Work toward getting a raise. (For help with this, see the examples under the agile self development solution in “Symptom #8: The Giant Plan for the Rest of My Life” in Part I.) Make sure you’re getting the most matching funds from your employer toward retirement.
Cut expenses for things that don’t reward you. Sell the three most valuable things that you don't want to own anymore on eBay or craigslist, or go to an appraiser, have a yard sale, or whatever works best. Turn them into money, take 10–20% of it for something fun, like dinner out, and use the rest to discard some debt.
Enjoy more free stuff. Visit the library. Take advantage of the great entertainment resources online, such as the Internet Archive’s Open Library and free songs offered by bands on their websites.
If you do spend money on something, pay less for it. About to go shopping? Think about whether all of it really needs to be brand new. Sure, you don't want hand-me-down underwear or food, but what about a winter coat? A dining table? A bread maker? Get familiar with your local resources. What kind of things do the different thrift stores have? Are you in a craigslist area? Does your community have something like a “pay-and-take” where you can exchange unwanted goods? Don't forget to ask your friends and family. Maybe someone has exactly what you need languishing in a closet and will give it to you, sell it cheap, or swap it for something else.
What's the most beautiful, useful, satisfying second-hand thing you've bought recently? Give yourself credit for saving money and saving energy by reusing. Comparison-shop between new furniture and antiques. My Ikea office cabinet and beautiful 1920s armoire weren't very different in price, but the latter gets much more active use in its place of honor in the living room.
We are in the midst of a cultural shift from consumerism back to collaborative consumption with services like car sharing and projects like Neighbor Goods blossoming all around the country. Whatever you choose, remember that you have a lot of options beyond what is advertised.
Scratch the going-out itch in a less expensive way. Want to visit that pricy restaurant, but it's outside your budget? Don't go for a full meal. Have a serving at home of something decent and cheap and then go out for just appetizers at the posh spot. Here’s a sneaky tip: You can enjoy them at the bar in many places and avoid the wait for a table.
Vacations often come with lots of hassles, especially if there's an airport involved. Why not save that money, stay at