Image from dumblittleman
Last month, I wrote about the Saving Your SpendingChallenge. If you are keen to save money yet you cannot do the 52 Week Money Challenge, this can be a good way for you to start. The concept of the SavingYour Spending Challenge is to equate your savings in accordance to your spending. For example, if you would go buy a ticket for the movies, consider if the amount for the movie tickets would be something you can save as well. If yes, allocate the other amount for savings and the other would be buying for the ticket. If not, then it is apparent that you got serious financial problems. Hence, for every expense, you are trying to save the same amount too.
If you are not very particular with this challenge, may I suggest
another one? Remember fundamentally there are two ways for you to have more
money. One is to earn more money and second is to cut costs. With this
challenge, you can be able to cut costs hence you can have more money. The challenge
is closely related to the Saving Your Spending Challenge. This is termed as
Save It Instead Challenge.
The mechanics of the Save It Instead Challenge is a simple
assessment if given an expense, can you live not spending it and end up saving
it.
For example, you walk into a store because of its pretty
clothes on display. You pick one dress that you like most. Then you ask
yourself, instead of paying for this dress, can you just save it? Can you pass
on the purchase and put the money to your bank account perhaps?
With this challenge, you can be able to strictly define the
expenses that are your needs and wants. From there, you can draw that thin line
as to what items are worth buying and which ones are not. I am certain with the
example above, you can just let pass on buying the dress and save it up instead.
This is a rather simple mechanics but takes a lot of
thinking and discipline. Incorporating this challenge to my life literally
helped me with my spending and savings. Though I don’t deny myself to go to the
mall and shops, there’s always that notion of asking if the item is worth
purchasing or should I just save the money up. My savings ballooned because of
it and no unnecessary purchases.
Perhaps in your next mall visit, test yourself to try the
Save It Instead Challenge. Remember, when you are able to cut costs no matter
how small it is, you would be surely proud of yourself.
P.S. To those doing the 52 Week Money Challenge and 52 Week Money Challenge Version 2, it is Week 28 already! Did you deposit the next amount yet?
P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.