This is a personal log entry for my 30-day budget challenge. You can also keep me honest by tracking my current activity page.
We're 10 days into the Budget Challenge, and it's time to head into Phase 2. First, a recap...
I mostly behaved.
As my public tracker shows, I had two cheats, both revolving impulse buys with lunch. Not coincidentally, my impulse buys are also usually bad diet decisions. For example, when the cashier at Arby's asked if I wanted to make my meal a large, my brain said "NO!!!" but my mouth said "Yes, please."
The first set of 10-day challenges wasn't a big one for me, because my wife and I have made a habit of regularly reviewing our finances. I did go through some of our daily spending, and I think the big thing we've slacked on since our daughter was born is ordering take-out. Delivery is expensive in the city, it's not that healthy, and, while it was perfectly forgivable when we had a 2-month-old, it's not necessary with a 1-year-old, especially not 2-3 times a week.
Day 11 starts tomorrow.
It's time for phase 2, and the big part of phase 2 boils down to learning to count in real dollars. If you spend $5 on a latte, that's 5 bucks you can't spend on something else. Some things are essential, no doubt, and you have to prioritize, but all of your money is still green (apologies to my non-US friends).
So, the challenge for phase 2 is to think about what else you can buy with that money, especially when you're considering a large or impulsive purchase. Sure, upgrading the CPU on that new computer is only $100, but what else could you do with the money? Would you rather have that then 10 movies, a couple of really nice dinners, or a stack of books? What if that $100 went toward your credit card debt or student loans instead?
I'm not telling you what you should spend your money on – I'm just telling you to stop and think about it.
Look for a substitute.
The other challenge for phase 2 is a follow-up on the first 10 days. Now that you have a sense for where your money is going, is there anything you buy frequently (like an afternoon snack) that you could replace with a cheaper substitute? Maybe you could bring food from home or brew your own coffee (not to harp on the food thing).
I've often been surprised to find that substitutes, with a little research, don't even mean suffering. I can make a better snack here at home for less money, if I'm willing to put in a little effort. I can brew an expensive cup of tea (or three) that's better quality than a coffee shop and a fraction of the price. It's not about depriving yourself – it's about challenging the idea that convenience is always worth the price.
How's it coming along?
Anyone still with me? Let me know in the comments how you're doing, for better or worse. I'm not here to scold you, and I'm sincerely interested in the challenges other people are facing.