Mind over Money

Having been students*** for so long, we have been poor and so we came up with lots of ways to save money. I thought I'd share some of our ideas with you. These may not be original, but they help us, so I hope they can help you.

1. We purposely spend money to save money. When we do our grocery shopping, we each get a treat. It is usually under $3, but it helps us to not crave all of the sweets and things that we could be wasting money and calories on. So, we don't buy chips, candy, cookies or very many other treats. We each get to choose something we really like and we don't have to feel deprived.

(I try to go grocery shopping only twice per month. We do go in between for milk and such. Every time we go, we tend to buy things that aren't on the list. I figure that if I go less, I'll buy less extra.)

We each have an amount of money we get so spend however we want. We call it our "mad money". We've ranged from $10-$50 per month depending on how rich we felt. (And how old each of us are.) Honestly, the $50 was too much. We felt like we could do anything and not have to save up for it. A budgeting mindset is just better for us.

When we get a large amount of "extra" money, such as a tax return, we spend some of it on things we don't need. We'll go out to eat, buy something fun or some other purchase we don't really need. That way, when we use the rest to pay off some debt, we don't feel like we didn't get anything tangible out of it!

2. Wise purchases. We have a budget and we make sure to input all of our purchases on the computer. It really helps to have a program that tells you what you've done and can track past records.

We also make sure to consult each other on large purchases. We have different opinions and it helps to talk it through, since we have different things to add to the decision.

We wait to buy large purchases. This way, we can know what the options are and make a wise decision. We can also give it time, so we can realize whether we really need or want the item.

3. The computer. We use a free bill pay service from our bank and get many of our bills online. It is easier to keep track of and saves paper and money. We don't have to waste so much paper on our end or theirs. We also don't have to buy stamps. It's great! (Especially because Aaron took over the bills when we went to this system! ;) )

Sometimes we purposely use a credit card that has cash back and then we pay it off online when we get home. That way, we get the benefit of extra cash, but we don't get the debt build-up.

4. Mind over Money. I think this is the most important one for us. Whether we have money to spend or not, we try to "pretend" that we don't. If we think we have money we can spend, we spend A LOT more than if we don't feel wealthier. I spend more on groceries, clothes, gifts, and anything else I buy. On the other hand, if I either don't have money to waste (in which case it is easier to not spend) or if I can convince myself of the same, I don't spend much. It is really weird. Our monthly expenses just drop and we can live on a lot less when we don't think we can spend money.

In reality, we need to be paying off our debt, so we really never have money to waste! If I can just convince myself of that!



***Aaron just has some minor editing and printing left and he is DONE with his Masters' degree. So no more school for a while!