It’s About Saving, NOT Spending

I’m talking about MONEY. We all have some, because we work. But, where does it go? Sure, car payments, mortgages, vet bills, cell phone data plans, that stuff is standard…I’m asking, where does the REST of your paycheck go? If you’re like most, it probably goes to a dress here, a jewelry purchase there, an evening out with the girls, a pair of cute wedges….soon your credit card statement arrives and your eyes bulge while you think, “How did I spend that much!?” or, even worse, you get it & think, “The minimum balance one more month won’t hurt…I’ll pay it off soon…” SHAME ON YOU!!!!! 

Here’s how to get yourself on track:

Start small. When you’re out shopping and see something you “NEED” (aka want desperately) to have, stop yourself. Just one time. Then, use your bank or credit union’s mobile app and transfer the money you would have just spent on that item directly into savings.  See? How fast & easy was that? Repeat the process every few times you shop, and that constant "need" will begin to subside. Now, you can pay off your credit card every month because you’ve stopped the excessive spending. The savings will start to pile up and heck, maybe soon you will be able afford the down payment on that car you wanted? Or maybe now you can replace your leaky refrigerator. The possibilities are endless! START SAVING NOW. 

After college I had two horses, a German (read: expensive to operate) car, more student loan debt than I wanted to realize, credit card debt and a below-average paycheck. I nearly let my obsession with designer handbags bankrupt me, while my horses needed constant veterinary care and somehow the minimum payment on every card became the norm. Luckily, I snapped out of it before it really spiraled out of control and took hold of my finances. Or did I?

I sold my horses, quit shopping for designer brands, traded in my fancy car for an economical make with better fuel efficiency (read: cheap to operate) and somehow…my credit card bills were still piling up. How was this so? Finally, I sat down and started a budget (after persistent suggestions from my beloved) and realized WHERE I was spending my money. I wasn’t spending excessively on EXPENSIVE items anymore, now I was just spending. Lunch? Sure! Dinner? Why not?! Coffee? I’d love to! And “These shoes were on clearance”….”this shirt was 50% off!”..."they had free shipping!" started coming to mind. I was spending as irresponsibly as ever, now I just had the excuses to back it up. Not cool, Jess.

This has been a process over YEARS for me, so I’m not expecting you to change immediately, but start to think about it. It’s not impossible, it just takes time. 

Last week I unsubscribed from nearly every retail email I receive. I have sworn off shopping and BUYING entirely because I don’t need anything. I know, it’s a concept many of us don’t understand, but it’s true. Do you really need anything else? Painful or not, the answer is probably no. With the home closing a mere 34 days away, there will be things we really do need, but right now, it's okay that I lay low. In the last month I've cut my spending 80% because I've decided to just stick to it. Stop spending. Start saving. So easy! You can do it!

I will get off my soap box and leave you with one more note: If you can obsess over the latest releases from any designer (Etsy or Rodeo Dr.), you can obsess over a budget. Re-direct your passion from spending to saving. I promise you won’t regret it.

*I am not a professional financial adviser, the techniques above are merely my own opinions and experiences. If you are in serious financial trouble please seek a professional at a financial institution in your area.