I want to stop spending so much.

[Miss Phode]

Re: I want to stop spending so much.

Well, so far I haven't had a problem paying my bills. My problem is that I save almost nothing. I want to start saving more...a lot more.

[staziaw]

Re: I want to stop spending so much.

Hello Miss Phode and All! I don't know if anyone else suggested these two things, but . . .

When I go shopping (Target or Barney's, doesn't matter), I pull everything my little heart yearns for. Believe me, sometimes the shopping cart at Target is full, full, full. Then, as I'm ready to approach the checkout, I go through the cart. What do I really need (what was on my original list)? Those items usually fit in the seat where kids are supposed to sit! Then I go through the rest. Do I really need that? Or do I want it? Or is it an impulse buy? I whittle it down until I have a "need" pile (beyond the list - usually something like undies or a sweater), a "want" pile (that spiffy leather jacket), and an "impulse" pile (a new stereo system). I really soul-search the "need" pile -- do I really need it? Why am I buying this now? If it's clothes, could I wait until I'm down another size? The "impulse" pile gets put back immediately -- there are things I'm saving for that are more important (a new couch, a KitchenAid standing mixer, a house). The "want" pile takes some work, but it MUST become one ONE ONE!!! thing! As a treat. A new CD. A new book. Something that I can give myself. By doing the full shop (throw everything in the cart and sort later), I get the psychological satisfaction of "buying" whatever, whenever, wherever -- without the monetary drain on my wallet.

The second thing I do is pay for EVERTHING (except for rent and therapy) with my ATM card. I know, I know, I'm envisioning Heidi's head exploding right now. However, when I get my bank statement, I go through it and mark every entry with a need, a want, or an impulse symbol (really just an "N," "W," or "I"). When I add up the wants and impulses (and usually give myself a coronary in the process), it makes me more aware of how I'm spending my money.

After 6 months of doing that, I found that I would only have 2 or 3 impulses and about 5 wants on my statement. I'm whittling that down as well! Again, it's about the psychology -- if I can physically see where the money is going, I'm more likely to change my habits. And watch my savings account grow!

I do the same thing with my receipts. If I come home from the drug store having spent $100, I take a hard look. Did I really need new makeup, or hair ties, or greeting cards, or some other crap? If not, I return it. The hassle of returning things is worth knowing that I'm over feeling embarrassed by my overspending. I just take it on the chin like a good girl, return the stuff, and the money goes back in my account. Oh, that's the other reason for using an ATM -- when you make returns, the money goes back into your account -- not as cash in your wallet!

I wish you luck, my little chickadee!! I know you can tackle this problem with all the grace and wit you are known for!

XO
Stacy

p.s. One more thing -- do you have Bank of America in Florida? If so, they have a savings program where they take the "spare change" from your ATM receipts and put it in your savings account. I "saved" $250 last year doing that!

Also, check into ING Direct or another online e-bank -- they will do automatic withdrawals into a savings account, which earns way more interest than a traditional brick-and-mortar bank! I have $100 automatically deposited every month. Just for snicks and giggles. Another $100 I don't have to fritter away.

Finally -- gas is covered under your "needs." You need to have gas in order to get to work, so that you can earn money to pay for the gas!!

[biogeek]

Re: I want to stop spending so much.

Pay yourself first. List it as a "bill" if you want. It will force you to spend less. Then, it will become habit not to spend as much.

[Miss Phode]

Re: I want to stop spending so much.

Oh my gawd, I cannot go into Target without buying 100 things I don't need. That place is dangerous for me.

[biogeek]

Re: I want to stop spending so much.

At least you're taking the first steps at getting your finances in order. That's a HUGE step!!!

There's this couple we know from church, they have to sell their home and move in with his mother. It's not that the husband lost his job or anything, they just spent way more than they could afford. The pathetic thing is that there are some "ladies" at the church that won't speak to her anymore because she's not part of the "spending cliche."

[staziaw]

Re: I want to stop spending so much.

Try it -- it takes practice, but I know you can do it! I was one of those people who could never get out of Target without spending $100 or more. Last time I was there, I spent $27! Kitty litter, toilet paper, paper towels, a birthday card, and a soda. Done. Whizz, bang, boom!

Buuuuuutttttt . . . I approached the checkout lane with . . . socks, slippers, a robe (I have 3 at home for Gawd's sake), 2 sweaters, 3 t-shirts, laundry detergent (I didn't NEED it yet), drawer organizers (who the heck was I fooling!), planting soil (I don't even HAVE plants in the house -- the cats just eat them), and 4 CD's. Hmmmm-mmmmm, the system worked!!

And of course I got some more exercise by making myself return all the items to their appropriate places!

Smoochies, kiddo!

Stacy

[biogeek]

Re: I want to stop spending so much.

A couple of weeks ago, there was an episode on Oprah about getting your finances in order. There's probably a link on her site about it. I'm not a huge Oprah fan by any means, but we saw a preview on tv and recorded it. There was also an episode on 20/20 a few days prior about spending, saving, and how to do it.

I guess January is a common month for folks to change their habits, one of which is finances. You're not alone in this! Hang in there!

[Tru2mee]

Re: I want to stop spending so much.

I too, used to be absolutely terrible with finances. So I have a budget spreadsheet that I created that lists out all my necessities (bills) for the next year. Dates, incomes, etc. The thing that keeps me motivated and on track is that "bottom line". Knowing that in December, if I stick to this (with an allowance to myself of $100 a week for whatever I want/need), I'll have $20,000 in the bank.... yeah well, thats' motivation! Trust me, seeing that bottom line drop down cause I splurged is not a good feeling... so that's what keeps me motivated to stay on track... it's worked pretty well for me.

[sadie147]

Re: I want to stop spending so much.

Dont feel bad about being the kind of person that just sees something and buys it at regular price..it's no better being a bargain hunter. While you will spend $60 on a pair of jeans you like, i will spends $60 on 3 pairs of on sale $20 jeans that i need like a whole in the head.


And don't get me started on Target (or tjmaxx or marshalls lol)...My last shopping weekend in Buffalo I managed to blow $750 USD (shopping only..not including gas/hotel/food) in 48 hours...ask me what I bought? who knows. I do remember a really nice set of flannel sheets i got at target for $16. the other 734? who knows.

Please..keep Target south of the border!

[Atkid]

Re: I want to stop spending so much.

Please..keep Target south of the border!

It's funny how you say that.....we didn't get Targets in Louisiana til a few years ago. When I would head down to the beach in Florida (Destin, Panama City) I would always make sure to get in my shopping time there. Once we actually got a Target here in Louisiana it was like the thrill is gone, I hardly ever buy anything from there. So keep the Target south of the border for you, makes it a treat to visit when you head over.

[biogeek]

Re: I want to stop spending so much.

Monique, I LOVE how you've set up your spreadsheet. I hope you reach your saving goal!!!!! That's so awesome!!!

Jen, your post was hilarious, but very poignant. I think it's amazing how many people participate in mindless shopping....it must be some sort of drug!!! I'm not trying to pick on you either, so don't take it the wrong way. This is coming from a saver, not a spender.

[sadie147]

Re: I want to stop spending so much.

Monique, I LOVE how you've set up your spreadsheet. I hope you reach your saving goal!!!!! That's so awesome!!!

Jen, your post was hilarious, but very poignant. I think it's amazing how many people participate in mindless shopping....it must be some sort of drug!!! I'm not trying to pick on you either, so don't take it the wrong way. This is coming from a saver, not a spender.

Oh I am the queen of mindless shopping! I can't resist a bargain. Right now I have 7 pairs of winter boots, 4 pairs of them are 'snow boots' I have only 2 feet but I now have 8 boots , and it really doesn't snow here that much LOL.

I need to set a spending money budget and stick to it. I like how, in one of these threads, someone mentioned how they put everything they want in their cart then before they check out they go back thru it all, only keep what they NEED, not what they want. This is what i have to start doing.

Bio I wish i was a saver, I really have to start working at it.

[Miss Phode]

Re: I want to stop spending so much.

Sadie, let's do it!

[biogeek]

Re: I want to stop spending so much.

Jen, slow & easy does the trick for making the transition "easier." You could go cold turkey, but that might be too dramatic of a change.

However, once you start saving and watch the compounding interest work in your favor, I would like to think that it would entice you to be more conscientious of your spending.

Pick a goal, doesn't matter how small, and start with that. After you complete that mission, pick a slightly larger goal.

I've been saving for a long time, so my goals are rather large. For example, we are saving for a dream home to pay in cash. We could buy it now with all of our savings, but then we would be eating into our retirement money that we've set aside. Our current home, we originally bought with it with a morgage, but we paid it off in 10 years instead of 30. We decided then that we were never going to have a loan again, and so far, we've kept that promise. It makes me sick to see a morgage payment where 99% goes to interest and a tiny, tiny part goes to principal. No wonder banks have nice buildings!!

I should start a savings club here! LOL

[Miss Phode]

Re: I want to stop spending so much.

Seriously Bio! Let's do it. I want to do a money saving challenge. You want to be our mentor?