I read through the article and has some great ideas, a few of them are already in place at my house. One of them is putting a label on my savings. When I save for something, I usually have a specific goal in mind. Many times, my savings are travel related, so the fund is named the city or place I want to travel. For example “San Francisco Fund.” If I want to buy something, like a new Scooter, it’s the “Scooter Fund.” It helps me visualize my goal and reach it faster. In addition to this, I will cut out a picture of a scooter, or the Golden Gate Bridge, and put in on my memo board so that I can walk by and see what I want to buy/do. Keeping your goal fresh in your mind can curb spending.
One of the other suggestions that hit home for me was related to who you hang out with. My sister is a big spender, but she works hard to make a good living, so she can afford to buy what she wants. I, on the other hand, can’t afford to be as much of an impulse buyer. However, when I am with her, I find that I spend more money. It’s contagious and you come up with ways to rationalize the purchase; how can you not buy those shoes when they look so good on you and they’re on sale? When I hang out with people who are thrifty like me, I tend to spend less. I’m not saying you need to ditch your wealthy friends, but maybe offset the time you spend in buying situations with them, or go in with a dollar amount in your head that you will spend on that shopping trip or at that restaurant.
My favorite suggestion from the article was to picture your dream retirement scenario. Do you want to play golf, garden, travel? What will it cost you to live this sort of lifestyle, and are you on track to achieve that goal? It may be too late for some of us to readjust our retirement savings so that we end up with a multi-million dollar 401k, but every little bit counts.
I really recommend reading the entire article, there are some really good ideas for people who are trying to save money.
Kerry Hammond, Esq. Bankruptcy Attorney