Like many, the new year has me doing my annual personal finance check-in and goal setting. As I recently mapped out my ideal budget for the next 12 months, I couldn't help but chuckle at my over-optimistic January self tallying up potential savings. Because while I entered hopeful digits into a spreadsheet, my reality check came walking through a packed shopping mall laden with post-holiday sales and temptation.
It quickly became clear just how easily even the best-intentioned budgets or personal finance plans can veer way off track. Our consumer culture delights in trying to convince us to spend more than we'd ideally like. So what's a well-meaning personal financier to do in the face of such headwinds?
For me, staying financially on track requires tackling overspending tendencies through a two-prong plan: 1) cultivating razor-sharp mental focus and discipline when temptation calls, and 2) mapping out intentional, principles-based spending systems to shape daily decision making.
Regarding focus and discipline, I admit that's far easier said than done when delightful discretionary purchases wink at me everywhere I turn. But I've learned some tactics that have proven invaluable. First, I consciously pause before any buying choice and ask myself if this aligns with my goals or simply scratches an itch for instant gratification. Getting into that habit beats mindless swiping. I also find pre-committing to specific monthly fun budgets helps me enjoy non-essential perks guilt-free while avoiding slope slippage.
However, sheer-knuckled mental discipline can rarely stand forever alone against society's consumer machinations. So I supplement with proactive systems and principles for spending that shift my daily decision context away from temptation. A few that guide me:
The “1 In, 1 Out” Rule
I don't bring any non-essential new items into my home unless I remove or donate something first. This check keeps clutter and thoughtless purchases in check.
The 30-Day Rule
For bigger desired buys, I force myself to wait 30 days while researching options and reflection on if I still feel it's worthwhile. Nine times out of ten, the urge passes.
Cash Only Discretionaries
I utilize debit/credit spending only for essential needs that allow for budget tracking. All entertainment, personal extras I pay for exclusively in cash. The tangible feel of money leaving my wallet is a powerful prompt to reconsider excess.
Give Back While Getting
I balance personal indulgences by donating a comparable amount or my time to a cause I care about. Doing so keeps me grounded in gratefulness.
The above factors all enable me to direct my financial resources with intentionality rather than follow the whims of wherever consumer nets get cast next. Do they demand some ongoing diligence? Sure. But that focused self-discipline pays compound interest over time.
And I'll admit I still indulge and get tempted just like anyone. But by concentrating my mindset and putting systems in place ahead of time, I find I'm able to enjoy those moments fully while never losing track of the bigger financial picture. The fruit is staying consistently on path towards my important big-horizon goals and values instead of being whipped about by the spending winds blowing fiercer than ever.
This is my entry to the ladiesofhive contest week 169 by @kerrislravenhill
