Frustrated by your spending habits? Like to do better?
The solution is closer to you than you think.
I have always been a good saver, but I did have moments where it all got a bit loose and the spending got away with me. It was not drastic, but it annoyed me because I knew I could do better.
To purchase my own home I set a ‘big audacious goal’ of saving a 10% deposit, plus buffer (for legal fees, moving costs etc). I was determined to get there and I needed to take a good look at my spending habits to see where improvements could be made.
I investigated a new way of thinking about money called “Conscious Finance”. I discovered that the cause of my problem went deeper than just being handy with the credit card. It was not about having more willpower.
My frustrations with money stemmed from my money beliefs and what is referred to as “unconscious scripts” that I have running through my head. These scripts have, over time, shaped my behaviour, which for better or worse, now makes me who I am. Some are positive and help me make very good decisions. However, some are not so positive and become roadblocks to achieving my goals.
To transform the “road blocking” scripts, I first needed to look at my past and the lessons of my upbringing. This would show me how my current behaviours had been created.
I already knew that I had taken on more of my father’s tendencies, than my mother’s. I have this strong desire to control money, which often leaves me annoyed when things don’t go according to plan. On the other side, I also have ‘blow out’ moments, which I get from my mother. The things I buy don’t necessarily make me happy, but I just do it anyway.
I started a diary to track what I spent and why, and to connect spending to feelings. That way, I could start to understand the emotional drivers.
I decided to only look at my personal costs and, in particular, how I kept to my $50 a week allowance, which I had recently set myself.
At the end of two weeks I learned two key lessons:
1. I spend money when I am bored or feeling lazy.
I bought café coffee three times a week and lunch up to three times a week. Why? I don’t like the coffee at the office and sometimes, when I bring my own lunch from home, it doesn’t excite me. So, I buy it instead. I decided these reasons were silly and there must be a better way. At the end of the first week, I found a really nice brand of cappuccino sachet coffee in the supermarket, which is quick to make and tastes good. It cost me $5 for the box of 10 and this lasted me a whole week. I also put a bit more effort into my grocery shopping for work lunches. This saved on average $8 a day, which is $40 per working week, or $2080 per year!
2. Knowing what I want to do in the week ahead helps me stay focused.
When I kept the journal I already had outings planned for Saturday and Sunday, which needed money. These gave me reasons to keep more in my wallet throughout the week, so I could enjoy my weekend excursions more.
Most of all, I learned that the best ways to succeed in this world are simple. The problem is that we often ignore them because we think they don’t work.
If you want save more, regardless of your level of wealth today, why not keep a money journal? Try it for just 2 – 3 weeks and have faith in this simple process. Who knows, you may find the one key money script which has stopped you from achieving your ultimate life goal.
Check out this link to find out why it takes more than willpower to change your spending habits: