Jun
16
tips to help cure my addiction to spending money?
Posted by admin under Other - Business & Finance
mannyg2199 asked:
im 24 and i feel i should have around $20,000 rather then what i actually have in the bank(which is nothing compared to what i should have)
im 24 and i feel i should have around $20,000 rather then what i actually have in the bank(which is nothing compared to what i should have)
i’ve taken some small steps such as i dont eat out as much and joining net flix for my movies(compared to myself buying every movie i have an interest in)
but some times i do dumb things for example lets say i go to best buys looking for an ipod arm band so i can do my routine jog and listen to music. the arm band isnt there….so instead of saying oh well and leave its like i have to buy something else to make up for it….and its usually more expensive.
anyways any good tips?
January 7th, 2009 at 2:59 pm
I suffer with the same addiction.
What has helped me is I find a goal to lean towards, something to look forward to, something to invest my money and time in. So I limit my spending in order to save up for whatever I have planned. Also I do give myself a little reinforcement at the end of the week, say ten dollars to spend. I don’t know it may work for some but not all.
January 9th, 2009 at 11:28 am
It takes self-control. There’s really just no way to get around that, ultimately.
The best way I’ve found to try to help myself maintain that control is to have multiple accounts where I keep my money.
For instance, I have one checking account where I deposit enough out of my pay checks every two weeks to pay the bills due during that time. I have another checking account (with a debit card attached) where I deposit a set amount for my “spending” money. When that money’s all gone, I don’t have any more “spending” money till I get paid again.
Any money above those amounts that I need, I distribute to a variety of accounts to keep them out of sight and out of mind. I make deposits to my 401k, to my Roth IRA, to three separate mutual fund accounts, and to a high-interest savings account (for my emergency fund.) I also buy a small amount of US savings bonds ($25/month) as a last-ditch emergency fund.
This way, there’s no “extra” cash sitting in my easily accessible accounts that I can just blow on everyday things. If I have plans to buy something in particular in the near future, I might deposit more money than usual into my “spending” money account. But once again, the same idea applies — when it’s gone, it’s gone.
And if you need some real motivation, take a look around the next time you go into that Best Buy you mentioned. See those people over 60 working as cashiers, etc.? Well, let me assure you, they wouldn’t be working there if they didn’t have to. And they even have social security, which is likely to be a pipe dream for anyone of my age (36) or younger.
Think of what these expensive purchases might be costing you over the long term. Look at some online calculators and see what would happen with that “extra” money if you invested it instead and then think about whether or not these things are paying their way. It’s your money; make it WORK for you.
Edited to add:
You might also try looking for tips on sites like the Dollar Stretcher: .
January 9th, 2009 at 1:11 pm
Ok, try this. Put away X amount of dollars every day for the rest of your life that you can’t touch until you turn lets say 50. Now lets do some math. If you put away $1 every day until you are fifty you will have $9,490 something dollars. May not seem like a lot but it is. You don’t even need a job to get or find one dollar a day. Now lets say you saved $5 dollars a day. You would have $47, 000 dollars by the age of 50. That’s what you can do for the long term.
This is what you can do for the short term. Calculate your expesnes for living every month in this crazy world of ours that has your rent, food, gas, your taxes for like your TV, cell service and internet service all in it. That should be a big number
Now give your self a weekly allowlance of no more than $20. Yes, thats it. It may not seem like enough but it is maybe even too much. That 20 bucks you can use to rent a movie and maybe some coffee in the morning. If you spent $20 a weekon goodies it would cost you $1040 a year. Little ways you can save money is to not buy drinks like soda or coffee. While you sip on drinks they sip away on your wallet. Just ask for water out of the tap. Not buying drinks can save you $20 plus dollars a week. Its the little expenses in life that you have to be careful of. I am not saying don’t watch movies don’t drink soda. But do it responsibly. Make it be a treat. Never lease a car.
Try to buy things used.
When you go into best buy to go get something pay in cash not credit card. That way you see the money disapearing and may make you think twice about what you spend your money on.
I 16 and trying to save up my self