Catfight Update: Secrets to Coping with Spending Cuts

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Categories: competition, life, saving, spending

“Americans love to fight. All real Americans love the sting of battle.” George S. Patton

I’m proof that Patton is right, because I LOVE A GOOD CHALLENGE.  But hey, wait a minute, he forgot about Canadians-my arch nemesis and competitor: Jacq at RichMomSingleMom is from Canada. OK, Patton MUST have been referring to North Americans.

MAIN TOPIC: What’s Going on with the Catfight?

OK, here’s the deal. I agreed to a spending reduction challenge with Jacq @ Rich Mom Single Mom, Christine @ Money Funk, and Laura @ Move to Portugal, back in the beginning of June. Jacob @ Early Retirement Extreme,  the king of spending reduction is our commentator/ moderator.

 At the time I thought it was a great idea. Now I’m wondering, WHAT WAS I THINKING?

Here is a summary of the challenge:

1. Competition categories:  Auto, clothes, eating out, entertainment/recreation, groceries, & household/personal care.
2. Methods: Get a personal baseline by averaging out spending in those categories.
3. Track spending in those categories for the month of June
4. Compare personal spending to baseline

Goal: Reduce spending in each category. Report to other competitors the percentage decrease.

Winner: Greatest percentage decrease vs. own benchmark.  Overall winner and category winners

Last week I wrote complained about my plight. My husband was not as committed to the challenge as I was. After hours minutes of thought about the wonderful advice from many of the spectators to this dramatic event, I accepted Sam @ Financial Samurai’s suggestion to motivate El Carino (my husband) for the competition with a PRIZE!! OK, that’s going pretty well. Now he is mindful of his spending and referencing the challenge too!

Next, my daughter returned from college last week. Although I considered recommending a family fast for the entire week to cut down on groceries and eating out, I knew I could not do that to myself!!! Fortunately, so far she isn’t eating too much!!! Of course both of them are wondering why there isn’t much food in the house!!!

 So what to do……. I really want to WIN!

PRACTICAL APPLICATION:  Here are the Secrets to Coping with Spending Cuts

At one time or another we all need to cut back our spending a bit. Sometimes it is for a time limited period; job loss, unexpected expenses, or some other unforeseen occurrence. Other times, the spending cutbacks need to be more permanent. Regardless of whether you need to cut back a little or a lot, for a short time, or a longer one, HERE ARE SOME WAYS TO COPE.

What not to do:

1. No cold turkey. Just like in dieting, if you cut back too much, you become too deprived and set yourself up for a spending BINGE.
2. Don’t bully your family-they will rebel (Take it from someone who has tried and failed). Enlist their participation and make it beneficial for them as well.
3. Do not spend your leisure time SHOPPING. That’s just stupid, like a dieter visiting a bakery. Reduce the temptation to spend.

What to do in Order to REDUCE SPENDING:

1. Reward yourself and your family with non monetary rewards; time, free activities, & experiences. Who knows, it may even improve your familial relationships.
2. Enjoy the challenge of the game. I happen to be competitive, so being in a COMPETITION makes cutting back on spending FUN! After all, I might WIN. You can adapt this to your own family, or set some goals and compete with yourself.
3. Ask yourself this question, “IS MORE BETTER?” Robin and Dominguez, authors’ of Your Money or Your Life stated, “If you live for having it all, what you have is never enough.”
4. Figure out for yourself when “enough is enough.”
5. Balance, moderation, and small changes lead to big results. Take your spending reduction “one day at a time” (Alcoholics Anonymous). You can do anything for one day.
6. Start today, don’t procrastinate.

What cost cutting strategies work for you? How do you keep motivated to spend smart?

ACTION STEPS:

Get a notebook and label it: “(your name) Personal Finance” and keep it by the computer. Use it to keep all of your personal finance goals, thoughts, activities, and plans.  

1. Write down everything you spend for 1 week.
2. At the end of the week, spend a few minutes looking at those expenses.
3. Ask yourself these questions;  Would I buy it again? Did I get enough pleasure from my spending?
4. Summarize, where can you cut spending without excess pain?

Photo credit: Ourania2005

 

YAKEZIE SHORT CARNIVAL

The Cost of Your Car @ Sustainable Life Blog

Health Care for Kids when you can’t Afford it @ Eliminate  the Muda

How to Overcome the Pitfalls of Zero Based Budgeting @ Wealth Pilgrim 

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