Discardia_ More Life, Less Stuff - Dinah Sanders [90]
Tape two index cards together on the long edge. On the left, write the list of things for which you want to be saving up and the amount it will take to do so. On the top right, put the amount you have assigned yourself as available for optional things ($100 in the example below). Enter every nonessential purchase and deduct it. Before making a nonessential purchase, you'll see your wish list on the left side and think about whether this purchase is really worth it. You'll also get a clearer picture of where your money goes.
For example, here’s what the right side might look like:
$100
$95 – latte & croissant $5
$92 – mocha $3
$82 – new TMBG album $10
$77 – latte & croissant $5
$74 – mocha $3
$54 – pizza & beer night $20
$49 – latte & croissant $5
If one of the things on the wish list side was “espresso machine $200,” it’s pretty obvious that it won’t take that long to save up for it by not going out for coffee drinks (or you could recoup the cost by buying it now). If the other thing on the wish list is an exercise bike, knocking off the croissants will not only help save up for that but will also make it less necessary.
When you need to conquer debt as well as save up for new expenses, try taking your charge cards out of your wallet and securing them at home. Wait 24 or more hours before making nonessential purchases. Start paying more than the minimum due on the bill and get yourself out of living in a credit crunch. Mediocre mochas may be a bad way to spend your money, but they guarantee more enjoyment than bank finance charges. Knock out the needless expenses first, and then improve your imperfect ones.
Beware of false savings
In my time, I've had memberships to huge warehouse stores. Costco is the archetype for this, but other similar places offer “great deals” when buying in larger quantities. Let’s put aside for now the mental stretch of envisioning one’s life 20 bars of soap into the future. I find that, after the initial glut of buying many things for relatively less money, I spend more in a warehouse store than I would by shopping at neighborhood stores—even pricier than average ones—and end up with more than I can use or with things that I don't really need.
Even sillier, I wind up buying not quite what I wanted—different brands, other flavors, higher calories—because the selection is more limited. Take a good hard look at your shopping habits and the kind of eating habits to which they're leading. Try taking a month off from the big-box stores.
Remember: Locally owned, independent merchants return significantly more of their money to your local economy. Get more fresh fruit and vegetables, pick out ingredients with which to cook, or make a sandwich for tomorrow's lunch instead of a frozen entree. Visit the farmers' market and find the good bakery nearest to your house.
At the end of the month see how you feel, and notice what you're eating and what you've spent. Chances are pretty good that the delicious organic produce, which is giving you loads more energy, has been easily afforded by not having unexpectedly bought a boxed set of DVDs for a show you liked when you were 12, a five-attachment cordless drill you still haven’t used, and a pair of ill-fitting orange sneakers with totally cool treads. As a bonus, you may find yourself buying smarter and eating smarter. When you prepare meals from scratch, the food already begins to satisfy your senses before the first bite. Right-size your intake.
Don’t overspend your health
Read the can or bottle of the beverages you're drinking today. Here's a good example of the kind of thing some of you might find: carbonated water, caramel color, aspartame, phosphoric acid, potassium benzoate, natural flavors, citric acid, and caffeine.
What do those ingredients do to your body? Are you draining yourself or fueling yourself? Drink more water and start