I have decided that 2012 is the year that I tackle my relationship with money. This is more than just reducing my debt. This is also about working on my view of money and debt. My fear of being in debt goes back as far as I remember, and any big bill puts me into a tail spin. But emergency financial situations happen to even the best of us. So how do I work on reducing my debt and handling any emergency financial burdens while I get back on track?
I started with an assessment of my financial situation (I just signed up for mint.com) to see what is coming in and what is going out. I know from that review that the small purchases that I ‘discount’ are areas where I need to first modify. I can make small changes, however, that will help impact my bottom line.
Latte reduction – When I do allow myself a latte, I bring my own mug. Most coffee places will give you a discount for bringing your own mug, and you are helping the environment too. When I make coffee at home, I add in cinnamon or nutmeg, so I have something that feels gourmet without the price tag.
Hit the library – I love to read, and visiting the library versus the bookstore gives me access to great reads and the only cost to me is the trip to the library.
Buy it when it is really on sale – Yes, this is the time to buy Christmas items on clearance, but you can also look for other items. I picked up several bags of Halloween candy corn that was on real clearance (14 cents/bag). Many of these items are on the bottom shelf, so keep your eyes open when you shop. But if you don’t absolutely need or want it, don’t waste your money on buying it. Something you will never use that is on sale is still something you will never use.
Bag it – I am bringing my lunch to work. Instead of spending $5/day, I can reduce to $5/week.
Using your work to your advantage – Many workplaces have discounts for movie tickets, lift tickets, theater tickets, and more. Just like a diet, if you feel like you are being deprived, it is much harder to stick to your plan. Figuring out how to do what you love for less is true motivation.
Which brings me to my January financial thought – looking at my budget as a challenge to reduce the spend on what I love to do, rather than looking at it as a ‘punishment’. If I take it on as a challenge, I can continue to find creative ways to spend less without doing less.
January will be my month of spend reduction on small, everyday items, and the challenge to find more ways to spend less. I am going to start my 2012 off with small changes that I can implement today, and start impacting my tomorrow.