Controlling What You Spend

Why is spending less than we make so hard to do? Do you just "owe it to yourself?" Is it lack of discipline? Maybe some things are really critical and can't wait?

Whatever the reason, here are some tried and true tips that will help you to get control of your finances. Some will apply more than others, but the important thing is that you START TODAY! Pick something, and do it! Even starting with something easy is better than just thinking about things and not applying them! Good intentions never got us anywhere good!

The Value of Money Management audio clip

Tracking your spend helps you see where it’s all going however, controlling it requires great discipline. Breaking old habits is extremely difficult. You MUST start with a written budget. No exceptions. You can’t control something that is not clearly defined. If it’s just a though in your head – that’s an idea, not a plan.

WRITE IT DOWN
Why is it so important to write your plan down? For the same reasons we make "to-do" lists and write down our other goals. A budget and your plans to adjust your spend down and your income up need to be written down. You need to look at them frequently, touch the paper, slide action items into your daily calendar, and check off accomplishments as you achieve them!

Written Budget audio clip

1. Cut up the credit cards – some people need to take this step first just to avoid the temptation of overspending. Others can manage spend through other methods. Think about your will power. The discipline of saving and waiting versus credit’s instant gratification can be very very hard to adopt into your lifestyle.

Cut the Credit Cards audio clip

2. Pay with cash only – going out and buying things with cash feels very different than using a card or paying with a check. Some people have paid for gasoline using one dollar bills – just to remind themselves of what they are spending every time. Paying for groceries or trips to the WaWa with cash heightens the awareness of what things cost. Maybe you’ll put back the extra bottles of Red Bull or bag of potato chips, if money is running tight.

Purchase With Cash Only audio clip

3. Only buy if it’s on the list – NEVER go to the store without a list. Think through what you need ahead of time, and if it’s not on your list don’t buy it unless it’s a true need that you just overlooked.

Shop With a List audio clip

4. Envelope System – is a variation on paying cash only. For most major expense categories take out cash for the weekly budget amount and put it in an envelope. Do this for lunches, groceries, gasoline, and other things spend on daily. When the envelope for that budget area is empty, you stop buying!

Envelope System audio clip

5. Use debit cards only – a variation on using cash but has the advantages of using a credit card. The debit card approach forces you to only spend what you have, but requires more discipline then the cash methods to use effectively.

Use Debit Cards audio clip

6. Negotiate, negotiate, negotiate – everything in this world that you want is either owned or controlled by someone else. Everything is negotiable if you are willing to ask.

Negotiate Everything! audio clip

7. Routinely update your spend totals versus your budget. Make adjustments in what you spend in the "controllable" areas to reign it in at least monthly, and weekly as you first start this process. Note that some categories are not very controllable - your rent or mortgage, minimum balances on credit cards, etc. cannot be cut back easily. Other categories of spend - lunches, groceries, snacks, entertainment for example, can typically be reduced, eliminated or delayed. This requires some sacrifice but is absolutely worth it as you get control over your money and feel the peace in your life as you conquer this challenging area.

Review and Balance Your Budget audio clip

Remember: There is never a shortage of resources, only a shortage of ideas! God is a creative God, and in His image, we are a creative people. Before getting discouraged, always brainstorm other ways of solving the problem!