So, how’d you do? Did you write it all down? Every little expense, right down to the penny? Did you find yourself NOT buying things because you got tired of whipping out the notepad?
It’s pretty amazing when we add it all up how many spending opportunities present themselves to us each day, week, month, year. I had some unexpected expenses this past month that put a good dent in my wallet. However, I am pleased to say that I had accounted for them in my spending plan, so had the money tucked away, ready to take care of the bill. Would I have been able to say that a couple of years ago? No way. Living week to week, scared of anything extraordinary that might happen with my money wasn’t only a reality, but a way of life.
Well, I got tired of being scared and uneducated. I got $mart. By keeping track of every little expense, I realized that there were little leaks in my “budget” that I either (1) wasn’t honest with myself about or (2) didn’t remember to include. Those annual or periodic expenses that might not come up every month but certainly bite when they do (vet bills, car taxes and repairs, insurance premiums, anyone?) were not even on my radar. I had to learn to work those expenses into my plan even though I might only pay them every once in a while. Even with a relatively new car, there is still scheduled maintenance that must be performed to keep the vehicle in good working order. I must account and prepare for that. Preventive maintenance is smarter than reactive maintenance any way you slice it.
I also had to get serious about what I like to call my “princess side.” Yes, there is a part of me that loves manicures, facials, massages, really great haircuts by an amazing stylist, and other small, but essential (to me, at least) indulgences. Allocating $10 a month to personal care simply wasn’t going to cut it for me. So, I either had to raise the amount that I was allotting for these treats or I had to cut them out.
Torn between $mart spending and taking care of the princess in me, I was faced with a substantial dilemma. What’s a girl to do?? I decided that it was more realistic to meet in the middle and take care of the $mart princess. By strategically scheduling pampering sessions and understanding that a great haircut should grow out beautifully, I could move my haircuts to every 6-8 weeks instead of every 4-6 and still look and feel great while exercising my $mart Girl tendencies.
Now, instead of spending my personal care budget on manicures and pedicures, I relegate those to the money I’ve saved in my FUN account. The money in this account can be spent on absolutely anything I want. If I want to buy $100 worth of gumballs, this account allows me to do it.
Aside from hundreds of dollars in gumballs, where else can we cut our spending? What have you been spending money on that is simply outrageous – what surprised you? It surprised me to document the money that I spend on clothing for me and for my son. I thought we were pretty frugal in our clothing expenses, but I obviously needed to adjust what I set aside each month for those purchases. I also committed to exploring local consignment shops for steals that would indulge our needs. I also took the opportunity to reflect on what I was buying and why. That is when I started thinking about shoes.
Shoes? Yes, shoes. I enjoy shoes, but seldom buy a pair that really feels great on my foot. They are either too high to realistically remain comfortable in at work or they just didn’t fit comfortably in the first place. Rather than buying shoes that I won’t wear again, I should make regular “try them on” dates at the shoe store, but relegate the need to purchase every pair I fall in love with. I also pondered if it makes more money sense to buy a new, inexpensive pair every couple of months or to invest in a modestly priced pair that offers stability and quality? In other words, should I spend $50 now for a great pair of quality shoes, or $10 every month for cute, but ultimately, inadequate shoes? That comes down to preferences and perceptions, so I’ll leave that up to you.
I’m not going to harp on gourmet coffee, because we’ve heard that so much over the past few years we’re sick of it and besides, we don’t want to be mean to Starbucks, but I will ask you to take a sincere look at your spending habits and patterns and decipher what you are spending your money on and if that spending aligns itself with your money goals.
Right now, my family is planning our first trip abroad – to
Little changes make big differences. Count on it and watch how $mart you can become.
The challenge: Decide on a goal that you wish to work toward. Define it, plan for it and take the steps necessary to make it happen. Make sure that every penny you spend is aligned with your money goals – including this new dream that you are working toward. Ask yourself before every purchase, “Does this get me closer to my dream, or does it push me further away?” Answer yourself honestly and make positive adjustments. You’re definitely worth it.
