There are a lot of resources out there about saving money. For several weeks I spent most of my lunch breaks reading sites like wisebread.com and the simple dollar. Suze Orman also has a book called “Young, Broke, and Fabulous” which has some very sensible financial advice for those just getting started.
I’m still in the beginner phase of getting my finances under control. There’s so much information out there and some of it is better than others. For some people, saving means finding happy hour specials instead of extravagant bar tabs, and for others it means washing and reusing ziploc bags. What works for me is:
1) Try to understand my compulsive spending behaviors. For a long time I struggled with recreational shopping, ordering stuff online, overspending on restaurant meals, and convenience food. These kinds of things can give you a temporary emotional high if you’re feeling down, but it’s an empty feeling.
2) Replace with better habits. I basically have a full gourmet coffee bar at work now to keep me from going to Starbucks. Replacing lattes with crappy instant coffee wouldn’t work, because it feels like deprivation. To keep myself from shopping, I arrange my closet in an attractive, appealing way that showcases all my favorite things. And I try to plan ahead and have convenient snacks, frozen pizzas etc. already on hand so I won’t order out.
3) Find a new pick-me-up. I try to call/ text a friend or have a good conversation with someone instead of shopping.
4) Find frugal solutions that work for you. There are people who make an entire lifestyle out of extreme couponing and hoarding food. I can’t handle that, but I HAVE learned a couple cheap, go-to recipes that can be made and frozen in large batches. This cuts your grocery bill and you always have something to eat. I also buy the same size/kind of tupperwares all the time so there aren’t tons of mismatched tops and bottoms floating around.
It’s important to have moderation in all things so you can make a lifestyle change and stick with it. Doing this for several months has given me an emergency fund for the first time ever, and I’m also paying down my car loan ahead of schedule. Saving money for its own sake is ok, but savings really give you options, freedom, and a safety net. Living paycheck to paycheck makes your world smaller and you’re always one step ahead of a potential disaster.
One last point I heard somewhere was that saving isn’t about depriving yourself- it’s about putting your money toward your highest priorities. If you think in terms of priorities, you can make a list like
1) Time with friends and family- cut back work hours or retire
2) Travel
3) Hobbies
4) Restaurant dinner
and allocate your money accordingly.