Are You Spending On The Wrong Things?

Are You Spending on the Wrong Things?

Do you spend money on things that you don’t even like? Are you cheaping out on areas where you derive the most enjoyment? This is a type of financial risk. The two previous posts in this series on money and risk are: Inflation Risk Risk of Needing Money Suddenly This article is about the risk of spending money on things that don’t matter to you. Reckless spending can be defined as overspending or getting into debt. However it can also be defined as thoughtless spending; purchases that don’t line up with your values. This is a recurring theme in the book Your…

Continue Reading
Real Hourly Wage Calculator

Real Hourly Wage Calculator

The last two week’s posts (Part 1, Part 2) weren’t math based. But what if you prefer a more analytical approach? The Real Hourly Wage (RHW) calculation from the book, Your Money or Your Life (which I highly recommend) and the Financial Integrity Program provides a way to compare the price of a product or service to your time required to make that amount of money. Note, this is a shortened and slightly modified version of the concepts available in the above two resources; if you like this kind of thing, please check them out as well. One of the main points of…

Continue Reading

Ways to Reduce Daily Spending Part 2

Here is part two of my tips to reducing daily spending. Part one is here. 7. Aim for “spend-nothing” days. Challenge yourself to see how many days in a week or month you can spend zero money. Don’t include your regular recurring bills such as rent, mortgage, utilities -- these days don’t give you freedom to buy a bunch of other things.  If all you pay is rent, it still counts as nothing spent. Keep track on your phone or calendar to see if you can do even better next week or month. Encourage friends to participate as well and…

Continue Reading

Ways to Reduce Daily Spending Part 1

The nice thing about day-to-day spending is that you get to make these decisions often -- usually more than once a day. Every day presents a new opportunity to make the choices that will help you reach your goals. Of course it's also important to control large, fixed expenses (such as housing and transportation) but these choices occur infrequently and there is often minimal flexibility after the fact. It's often the smaller, frequent purchases that can really ruin your budget or plans for financial independence. Everyone’s heard the old advice about how cutting out a daily coffee results in so much money at the…

Continue Reading

First Annual Clothing Count – 2015

Why should you count your clothing? It can help you to: reduce clutter discard or donate unused items determine what shopping is required or not required raise awareness of abundance What about frugality vs. decluttering? I didn’t want to discard useful clothes just because I had too many of them. My solution was to put them into a storage box for future use. My Method: For each clothing type I removed them all from my closet/storage area, counted and sorted them into piles: love like and use functional for some purpose don’t use but suitable for donation too ratty for…

Continue Reading