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More Fun - Less
Money
"In my search for simplicity I continue
to struggle with over-spending. I'm sure there are plenty of people who face
the same difficulty. Two of the largest areas that I have trouble with are
eating out and entertainment. I'm young and tend not to be thrifty when it
comes to hanging out with friends and taking in the latest movie. I would
really appreciate some suggestions on curbing spending--and better yet,
suggestions on how to curb the urge to spend. I realize this is a monumental
task, but I would love whatever help you could provide. Thank
you!"
~ Amy, Colorado
Amy asks a good question. Many of us seem to struggle to watch our expenses.
Sometimes it's hard to just say no. So what's a person to do?
We'll begin by asking two questions. Where do you spend money? And why do
you spend money? The answers to those two questions can help us get more
enjoyment out of our income.
Let's look first at where we spend our money. That should be fairly easy
to identify. If you have trouble remembering just look at your credit card
bill or ATM transactions. Then look for some common theme among the expenses.
Perhaps all the purchases happen in the mall. Or maybe Saturday afternoon
is when you pull out the credit card. Finding a pattern will help you with
the second question.
And that's to ask yourself why you spent the money. You don't need to be
a psychologist. Just look at your habits. Do you think that you're spending
money because to get a bargain? To please or impress your friends? To reward
yourself? Perhaps it's because you want to be part of a group. Be honest
with yourself. There's no advantage to self deception.
Suppose, for instance, Amy liked to do 'happy hour' on Fridays. And that
often led to dinner afterwards. If it's not part of her planned expenses,
why does she do it?
The most likely reason is that it's
a reward for surviving the work week. Or maybe because she enjoys spending
time with friends from the office. And it's understandable if that's what
she wants.
But, let's ask one more question. Is going to 'happy hour' the best way to
achieve her goal? Could Amy be happier by doing something different? The
answer to that question is important. Right now, she might think that missing
out on Friday night with her friends would be a big sacrifice. Just saying
'no' is going to be hard every Friday. Very few of us has the strength to
withstand that type of temptation for very long.
But, what happens if Amy finds that she gets more enjoyment out of doing
something different? Suppose that she spends an average of $20 each week
when she goes out. And that she goes out to be seen in new and trendy clothes.
In fact right now she has her eye on a dress that costs $100 but won't buy
it because it's too expensive. Would she be willing to trade two months worth
of happy hours for the dress? If so, after eight weeks she could buy the
dress without guilt and still have saved $60. She'd go out less often, but
look better when she does. Could be a worthwhile trade for her.
Or maybe Amy is really one of those social type people. She needs that Friday
evening companionship. Couldn't she invite three of her office friends to
her home after work? Between them they could easily afford a $20 bottle of
wine and still save $60 (or about $15 each). Even if they ordered in a pizza
they'd still save $10 each.
The trick is to think about what really makes you happy and then find out
how to get the most pleasure for your money. Amy mentions that she likes
to go to movies. And at today's prices that can get expensive. So let's think
about the situation. Why does she like to go to the movies?
If it's because she likes the atmosphere of a movie theatre she could save
some money by using the theatres that have matinee specials or offer lower
prices for 'second run' releases.
Then again, maybe it's the discussions with friends about what they liked
or disliked in a movie. If that's the case Amy could get as much pleasure
from discussing television programs. Or even waiting until she does see the
movie months after it's release and then starting a conversation about what
she just saw. After listening to others she might just decide to skip seeing
some movies.
Home video is another alternative. She
could invite some friends over for popcorn and a movie. It might be a 'repeat'
for her guests, but a 'first run' for Amy. The conversations would be just
as enjoyable for her but the popcorn sure would be cheaper!
Once you know what really makes you happy it's possible to use that knowledge
to help you withstand temptation. Let's go back to the dress illustration.
A reminder (perhaps a picture) stuck in her desk calendar at work every Friday
could be enough to get the job done. Perhaps a note reminding her 'two weeks
down, six to go' would be just the spur she needs.
It's also possible that Amy will study the situation and decide that she
really likes spending money on movies and eating out. And that could be ok,
too. At least now she'll be able to do it without feeling guilty. It might
mean that she'll need to drive that old car for another year or so, but if
that's what makes Amy happy so what? After all, getting the most value for
the money she spends was our goal.
Many of us are like Amy. We spend out of habit. But by considering what we
really want it's possible to actually have more enjoyment while we spend
less money. It will probably be hard the first time we turn down an invitation
or suggest people come over to our place instead But that first step is really
a step towards being your own person. And that's where you'll find the greatest
pleasure.
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