I’m constantly dishing out unrequested advice about budgeting and savings. For reasons even I don’t understand, it freaks me out when people reach 30 without a investment plan and I become a nagging housewife.
The other week I read an article (which I can’t find the link to) about the benefits of not spending any money for a week. Im not a huge fan of all or nothing, Ive never seen ‘nothing’ wind up in anything apart from ‘all’ very quickly… But I did like the idea of resetting your spending habits by significantly cutting spending for a week every month, or, you know, whenever you feel like it.
After an expensive start to the year, driven by my obsession with home decorating and overseas holidays, I awoke one morning sick of spending money (seriously, I have the least addictive personality ever, give me too much of anything and my brain rebels against it). So I thought I’d give it a go for a week. This was much to the amusement of my mother who noticed the sudden lack of parcels landing on her doorstep from all my online purchases (sent to her because I love NZ Post but hate my parcels sitting by my front door all day).
IT WAS HARD.
I limited myself to purchasing just groceries and entertainment. It was a bit of a copout because entertainment can really add up, but I like to ease into these things to avoid booming and busting. It’s important to note that even with these loose limitations, I still busted.
I believe the main reason is that I now have a mortgage overdraft account, which means the days of immediately transferring money to my savings when I get paid are over. When the number you are overdrawn is large enough, a couple of hundred extra spending is dwarfed and goes unnoticed. It becomes very easy to spend hundred of dollars more a week without noticing.
So out pops my custom budget spreadsheet, where I add actual target numbers week on week. So far this has proven a great incentive. I hate failing to meet targets.
Does any one else have any good budgeting tips?