Managed Spending
In my first post of the new year I mentioned my three goals of debt reduction, managed spending, and discount shopping. It’s ironic that for me, and maybe for many others, part of debt reduction is also managed spending. Though I am concentrating on paying the debt, the fact remains that if I am still using credit cards I am also incurring more debt. I think that is what makes the whole effort seem like an exercise in futility. If I don’t think of the two simultaneously, then I am taking two steps forward and one step back.
It seems that the easy solution would be to stop using a credit card. That may seem obvious. However, just writing those words reminds me of a popular weight loss guru’s book title: “Stop the Insanity.” Continuing to do the thing we are working so hard to control—which in this case is spending–does seem a little like insanity. And, yes, it is hard to stop doing it.
We are always spending. We buy the essential things, like food and gas, rent, car payments, insurance, our mortgage. Then it starts getting fuzzy. We do need clothing, whatever our career may be. We do need supplies for our various jobs-whether it’s a computer, Blackberry, Iphone, or simply a mop. Most of our jobs require a certain level of networking and that involves time and money. Giving and getting. We can cut back, but how far down the rabbit hole do we go with the concept of not spending? It’s a necessary evil.
I am sure I don’t have the answer. But here’s an idea that might help you get a grasp on spending. Consider spending cash. Imagine that you have no credit card, no debit card. Pretend that all the cash in your wallet is all the resource you have. Now every purchase is a depletion of that resource. Sounds scary, doesn’t it? The realization that soon you will be carrying around an empty wallet may register as a means to limit frivolous spending. Only you can decide what purchases constitute frivolous spending.
Try it. It’s a good exercise. If we don’t curb our spending impulses, and we run up our credit cards, we just may be in this position. What’s in your wallet?