One Simple Thing Anyone Can Do to Recover From Big Spending
Sometimes, after the holidays, a wedding, a big vacation, or any occasion that requires big spending, your financial house can get out of order and stress you out.
Or perhaps your bank account has been sitting at zero or in the red for quite some time and you want to start saving big.
Remember, bad debt should always be paid off first and it’s always a good idea to have money available at hand in a savings account.
Don’t let overspending or low funds get you down. Sometimes it seems nearly impossible to just start cutting back a significant amount of your spending or too much work to go through every closet and storage space to see what you can sell.
But here’s one simple thing you can do now to start recovering and saving:
You’d be surprised what a big difference it makes to set aside a small amount of money only every week. Choose an amount that feels so small to you that it almost doesn’t matter, like $5. Then stop there. The point is to not do too much too soon.
If you want more accountability or don’t want to think about actively transferring $5 every week, you can use banking apps like Qapital to automate your savings by setting deposit triggers. It’s amazing and you can access everything at the palm of your hand.
Then Make Small Increases
Once you get comfortable seeing $5 being taken out of your paycheck or bank account weekly, slowly increase the amount every couple weeks or so. Again, just choose a small amount that doesn’t stress you out, like $5 more to put away.
What starts to happen is you soon realize how saving is not such a daunting endeavor. You’ll actually feel more motivated to make small changes elsewhere to your daily spending habits that could go towards your weekly “piggy bank.” Perhaps you can:
- Bring lunch to work once a week and use that $8 you would’ve spent eating out towards increasing your weekly stash.
- Walk or ride a bike to closer destinations and put that $5 of saved gas money aside.
- Buy coffee from a less expensive coffee brand and put that extra $3 to your savings.
All these little amounts will add up in a matter of months and put you back and well over the black. If you save $8 from bringing lunch to work only once a week, that’s about $32/month and $256 in 8 months.
It doesn’t sound like much compared to your monthly income, but in Rule #1 and financial investing, every little thing counts.
If you want to take even more control of your budgets and daily spending, another great app I recommend is Mint. You can get suggestions based on your spending, track your bills, and even see your credit score. It’s a great all-in-one tool for money-management.
Here’s My Challenge for You:
Pick a small amount you can afford to set aside on a weekly basis and commit to saving only that amount for a few weeks. It’s that simple.
When you’re ready, increase that amount. Again, only a small amount that you’re comfortable with. Then do it again after a few more weeks. As you set this routine, you’ll soon find a good balance between spending your hard-earned money for the things you need and enjoy, and saving it to recover from your big spends and build your wealth.
More importantly, this simple challenge will not only get you started on saving, it will set you on the path to feeling empowered to save and live a less expensive lifestyle. You’ll discover that you don’t actually need things you once thought you did.
I guarantee this small challenge will make big changes to your life.
Make it easier on yourself to get your finances in order with this 12 Month Financial Planner that I’ve created for you. By reviewing the clear benchmarks, reviewing the monthly list of promises, adding your own, and completing challenges. Celebrate each win, no matter how big or how small, and you’ll notice how much more fun it becomes to do something that you initially thought would be ‘work’.
Whether you start this in January, or put the planner into use halfway through the year, the promises and challenges will work for you and help get you focused on the financial success you’ve been striving for.