Wednesday, July 4, 2018

6 Reasons to Start a Spending Ban

I know that excess and deprivation can both be bad and sometimes is much more ideal, but going for a full month without spending any money feels amazing. I started this practice back in August 2016 and have done 7 month-long bans since then totalling $16,000 in savings. That total isn't necessarily going to be very realistic for everyone but for me it worked on the basis of selling my vehicle for cash and lining up ban-months with tax refunds and months that I get 3 pay cheques instead of 2.


Here’s the idea. Every few months, or more/less, take one full month and commit to spending no money outside of necessary bills and groceries. For me, that also means making a stronger effort to stay within my grocery budget (which I am not great at!) If I can help it, I also try to pre-purchase items before the ban if I know I’m going to run out within that month. I also follow a strict rule about buying food, in and out of the spending ban. If I need to buy breakfast because I didn't have time for something before leaving home it must be bought in cash. Cash that I already have, not that I've taken out for the purpose of spending. Cash is my "free" money.


I’m not sure how I came up with this idea, possibly from an article I read about a woman who didn’t spend for a year (including occasionally dumpster diving for food..) I’m very attracted to the idea but I also have no desire to deprive myself even half as much as she did, I like my food from the store, thank you very much!


There are so many great reasons to take up the occasional spending ban, here are a few:


ONE:
You get more time to consider the things you want to buy.


Impulse buying, seasonal shops, social media.. these are all big purchasing influencers and sometimes convince us to buy things we don't really need. Do you really need that top? Is it worth it to eat out again? Don’t you already have that in 2 other colors? Will you wear that for more than one season? If you see something you really love this gives you the chance to really consider it, evaluate if you truly need/want it and if you can afford it – all before making the purchase. If it turns out you don't really want it, you've saved some money, if you do need it then you get something that will feel more valuable to you.


TWO:
If I don’t buy ____, that’s $___ that I can put towards _____.


I think this is my favorite reason. Realizing that the fewer things I buy and therefore the more I put in savings, the more I have to put towards my next trip! Not buying a $2.50 bagel for breakfast before work might not seem like a big deal, but that is over $50/month if you’re buying every day. $50 can then become a nice dinner out, a room upgrade on your next trip, a new piece of clothing or simply 50 extra dollars in your emergency fund.


I’ve been asked many times how I afford to travel as much as I do (which isn’t even that much!) and this is a big contributor. The other thing to remember is that saving feels more worthwhile if you have a goal and something you truly value to potential spend on later. Travelling is important to me so I make it a priority.









THREE:
Watching my savings grow is way more satisfying than buy stuff.


I have a spreadsheet where I track my budget, spending and savings and watching the savings number grow month-by-month, even though I don’t really know what I’m saving for, is so thrilling! Once you get over the need to spend money to feel good, you’ll realize it feels even better not to.


FOUR:
The big pay-off.


In the end of the month, or quarter or year when I look at everything I’ve saved and realize everything I can now do, it really can buy happiness. Financial comfort and safety allow me to point my life in the direction that pleases me and I can reach for more. Not buying lunch every day, shopping on the weekends or missing an event can feel shitty at the time, but when it allows you to take a spontaneous trip later, or buy something special or go on a fancy date it will feel worthwhile. Your choices shouldn’t be save money OR have fun. The more you save the more freedom you have for spontaneity!


FIVE:
Remember that it isn’t the end of the world if you spend a bit.


I have flexible rules for myself while living on my ban and I keep them flexible because it isn’t the end of the world either way. I love months were I spend nothing at all, but if my phone dies I’m going to get a new one. If I run out of a product that I use every day, I’ll replace it. If something I have decided 100% to buy in the near future anyway goes on for 40% off, I’m probably going to buy it. It really isn’t a big deal.


SIX:
A new appreciation for not spending.


Since starting this journey I have spent more time outside, had more game nights, re-learned to ride a bike and ended up in a wardrobe I love to wear. I now have an arsenal of free thing that I love to do and a lot of the time I do them even when I could be spending money.


Writing all of this out to share has me feeling like I might be ready for a new challenge and I've never done ban months back-to-back, maybe I should try for 3 months?

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