Less is More

Having less available money can result in spending less.

Obviously this isn’t a definite, but it does contribute to less expenditures. I learned this lesson back when I was paying off my credit cards in 2004, but have been reminded of this lately.

As our readers know, James & I are both working to reduce our monthly expenditures by at least $50 each. I’ve found that if I just put that extra $50 away, then I’m more likely to save even beyond the initial goal. Part of it is psychological, but when you have limited available cash in your checking account or pocket, you are less likely to spend like you would if it felt like there was more. Here are a couple of specific examples:

1) When planning to go out with friends, bring a specific amount of cash to cover your bill. Everyone knows that it is easier to spilt the bill if you’ve got change, so plan ahead to save hassle & money. Often times you have a pretty good idea of what range the restaurant is, so price it out beforehand. Plus, if you know how much you have in your pocket, minus how much it will take to get home (walking is best), then you can limit your menu selection and/or how much you drink/eat, by what’s in your pocket.

2) Most of us get paid in two week cycles. We all know how great pay day is. At the same time, my tip is to squeeze yourself before the next pay day. On Sunday night before pay day, sit down and look at your account balance. Determine what your schedule is in the next week, and what bills or expenses you might have. If you have excess of what you are expecting to spend, stash any savings away before you are tempted. Plus, it makes the next payday that much better!

In the end it is mostly a mind game, but it seems to work from my experience. Try it, you might like it!

Happy Saving!

Miel