Spending problem? You don't need a 12-step program!

Before we expand on any further budgeting tools, I’m going to give you some tips on how to better discipline yourself, in terms of spending. I’m also going to assume that you all have spending problems without the incomes to support those habits…(I can identify!).

1. Situation: You’re in a store and you see something you must have. You grab it and approach the check-out counter. Or you grab and hold on to it, looking for other items to add to the impulse basket. Peter and Jennifer Sanders offer this bit of advice in their book, “Living on a Budget” for such a situation: Delay the purchase for 1 week and see if you lose interest in the item. This is painful (especially for me), but extremely cost effective! I’ve actually done this twice already and saved myself a lot of money by not giving in to the temptation to spend.

2. Cut your television consumption by ½. Also, for some of you, a painful piece of advice. But you MUST become aware NOW of the myriad product placement strategies that networks employ. Not to mention, advertisements and commercials are extremely persuasive these days. For example, I did not know that I absolutely needed an iPad until last week! Thank you, strategic advertising, for making me aware of my lack! If you reduce your TV consumption, you reduce advertisers’ power over your emotions and your wallet. And you save yourself from permanent brain rot.

3. Resist the urge to “fritter away” money. What does this mean? If you total your 4 trips to Yogurtland this week, your coffee consumption, packs of gum every time you fill up on gas or go to the grocery store, or make other small purchases, two things happen. A) You make business owners VERY happy because they make money on high-margin items.

(High margin à e.g. A pack of gum costs me $0.20 to purchase, and I sell it to customers for $1.89. I have just made $1.69 on your inability to resist the urge to buy gum from a cheaper retailer.)

B) Your small purchases add up very quickly to total a large chunk of money spent irresponsibly. I’m guilty of this too often! But let’s work together to cure “financial stupid-itis”!