Various Stages of Planning

     Living well on a small budget is possible, but it requires two things: flexible planning, and the ability to be honest with yourself. What does self reflection have to do with budgeting? What do you do that breaks your budget? Do you find yourself clicking "Add to Cart" too easily online? Do you usually end up spending more than you intended while out with friends? Does your list of bills disappear from your mind when you see an AMAZING sale at the mall? My personal pitfall is food. All my spending money goes to food; either getting something to eat with friends, stopping by a drive-thru or convenience store because I forgot to pack lunch, and the big downfall for many Americans: that $1.50 coffee (or $4 latte) that I'd grab without thinking about it. When I started planning for my move away from home, I knew I needed to figure out how to keep myself from blowing money on nomming. This leads me to the first requirement: flexible planning. I stressed flexible because if your plan is rigid, you will break it eventually. If your plan has a back up plan, and the back up plan has a back up plan, you're less likely to break it.

     I, the obsessive planner, started planning my move a good six months before I actually changed residences. While you don't need to move in order to begin living creatively within a budget, it is helpful to have a planning stage working towards a goal. Weaning off those everyday purchases may help, or making a goal (by next month, I will take my own coffee to work and not buy it from Starbucks, etc.) might work better for you.

     So what's the first step towards living creatively within a budget? Figure out your weakness. Where do you spend money the most? Many financial experts recommend writing down everything you spend every day for a few days. Include the dollars and cents, and don't alter your spending habits while you take notes. Sound familiar? A lot of diet strategies say the same thing. And spending less money is very similar to a food diet; it's the same premise. We know we can save money by getting up a few minutes earlier to brew our own coffee, but Starbucks and other coffee places are still booming with business--why? I really think a lot of our purchases are fueled by a need to consume. It's just like a need to eat or smoke: we're conditioned to think that modern conveniences equal a better life. We're told over and over that our time is worth more than our money, but no one stops to think that the few minutes it takes to make a cup of coffee in the morning is less of a wait than standing in line next to grumpy, under-caffeinated people and being waited on by a teenage barista that may or may not know how to brew a decent cup. The fact that our nation still does this proves to me that we're infatuated with buying things. So: what is your weakness? What is the one thing you spend too much on? Conversely, what area of your budget do you refuse to downsize on? Spend some time thinking about this, and you're welcome to post a comment below identifying your weakness! Good luck with your introspection!