Creating a Healthy Spending Habit

Some of you might think...what is a spending habit and how do I make it healthy? Sounds a little odd, but it is necessary.
A spending habit is a plan on how and when you will spend your money, kind of like a budget but that is a whole other topic. This is more a plan of what type of things you will spend discretionary income on and when its okay to make purchases to stay in line with your financial plan (and your dreams).

This is a topic often overlooked. Most people set a budget and try to stick to it...or not and never really think about a plan for the rest of their spending. It was a new idea to me too at one point but now I love it. It keeps me on track with my goals and gives me a real sense of satisfaction when I do spend.

Not counting your bills, the monthly expenses that you have and pay to "keep the lights on" etc., think about what other money you spend. How many times do you eat out? Is that accounted for in your budget? When do you go clothes shopping, or do you just shop when the urge strikes you? If you are the later you may really think about this because the people who shop when the urge hits them are usually the ones who spend more than they wanted to or had budgeted. When you walk into Target do you only come out with what you went in for? Or is it a $100 later and a cart full of things that weren't on the list?

I relate spending to eating often because in a way they are both things people struggle with keeping in line and they are both things we have to do. You can't NOT eat and you can't NOT ever make a purchase. In my over spending days, I could spend $100 extra dollars at the grocery store, just because I was there and it was a reason to shop. I'd buy makeup, hair and body products even socks, because it fulfilled my shopping need.

So what I'm trying to get you to think about is "do you really need it?" or are you just buying it because it's there or it's on sale.

I have so much spending money I take out per week. This money is for extras that aren't in the budget. Clothes shopping, makeup (not the necessary kind, the fun stuff) lunch out with a friend etc. At the beginning of the week I look at what I have coming up that week, do I have a lunch scheduled? If so I set aside approx. how much I'll need for that and then the rest is my spending money. If I want to really shop and not look at price tags then I know I need to save as much of my spending money as possible for a few weeks and then when I go I have no guilt, no regret I just shop and buy what I want. So much more rewarding than just sticking it on a credit card and then regretting later when the bill comes. But the point is I plan out what that money will be used for. Before I'd spend and then about the time my money was gone, I'd find or think about what it was I really wanted and it would be too late. I'd be out of money.

If you like to eat out, plan how many times this month or pay period you would like to do that. Then stick to it. Use only the money you had planned on using for those meals and if you splurge on the first one, then maybe you don't get to go out to eat the next week. But make yourself accountable. Lack of planning does not count. If you are getting home a little late from work that is not a reason to eat out. The meal for that night should have been planned and possibly prepped and then you can stay on track.

My husband and I have a plan that neither of us can be out and spend more than $100 without first talking about it. This does not mean you have to answer to someone, it's just accountability. He is my voice of reason and I am his. If he is at Costco picking up a few things and really wants that flat screen TV instead of loading it up, he'd call and I'd say we have blank, blank and blank we decided we would buy first before we even think about the TV, because it's not needed. If I find a dynamite pair of pumps but they are over $100 then he might tell me of the new curtains I want for our bedroom that we talked about being our next purchase. There are those occasions when I really want something and it's a good deal etc. or he does and we say okay, go ahead and get it and we'll just put "x" further down on the list of our things we want to do.

This list I talk about is our priority list of things we want. No limits just sit down together and list it all out. A new front door, new carpeting, a new suit, or parts for his Harley. We agree to the priority of these things and that they are our most wanted items. Then when one of us is thinking of an impulse buy, we remind each other of our list and whatever is the top priority item on the list at that time.

Not only does this keep us on track financially it makes us feel like we are in this together and working toward a common goal. And when I know we have each others backs and we are working together those pumps don't look that attractive anymore.

1. Make your priority list
2. Decide how much spending money you need and what is coming up in the week it will need to be spent on.
3. Stick to the plan!!!! I promise the self esteem you'll get by doing it far outweighs the instant gratification of an impulse buy.

Now it's like a game to me, I know the big retailers are banking on me making impulse buys while I'm there and I'm out to beat them and only get what's on my list and end up the rich one in the end. After all my goal is not to make them financially successful it's to make ME and my FAMILY financially successful!