Can't stick to a budget? Try these tweaks instead | Your Money and Your Mind

118,802 views ・ 2021-02-03

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Let's cut right to the chase:
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for most people, budgeting just doesn't work.
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[Your Money and Your Mind with Wendy De La Rosa]
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You maybe follow your budget for a few days or a few weeks,
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but soon, you forget about your budget
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and stop tracking the flow of your money.
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And there goes your budget.
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And that's because of reality is, most of your budget is fixed.
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You can't really do anything about it
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without making major life decisions.
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Your rent is your rent.
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Your phone bill is your phone bill.
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Your car payment is your car payment.
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But the focus of today is the fact that many people struggle
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with the little, ongoing, frequent purchases like eating out,
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delivery services or shopping.
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So let's tackle each one of those individually.
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First, let's talk about eating out.
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In my research along with some colleagues,
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I found that eating out
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is one of the biggest financial regrets that people have.
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The only other expense that's even less satisfying than eating out
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are bank fees!
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For eating out, instead of making a financial budget,
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where you tell yourself you're only going to spend
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100 dollars a month on eating out,
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let's focus on what I call a "frequency budget" instead.
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So instead of focusing on the amount of money
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that's much harder to track
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and sometimes even impossible to track,
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let's focus on limiting the number of times
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that you go out to eat.
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You'll have a much easier time saying no
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and tracking your budget.
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Now, I understand that we are all social humans,
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and eating out is such a social activity.
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And if that's what you're craving, I have some tips
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to make sure you can hit two birds with one stone.
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Instead of eating out,
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go and have a picnic with friends,
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sign up for a workout class
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or do any of the hundred social activities that you can do
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without having to spend 50 to 70 dollars a night.
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If you plan it right,
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you can still satisfy your social craving
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and still save your wallet a lot of money.
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Now let's talk about delivery services.
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A recent investigation found that those who order through a delivery app
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end up spending anywhere from 7 percent to 91 percent more
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than those who dined in,
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thanks to the pile of miscellaneous charges and fees.
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In fact, the same item can be more expensive on the app
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than in the restaurant.
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Right now, you may be ordering out more frequently.
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One analysis found that with the addition of delivery apps,
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fast food is no longer something associated with a quick bite on the go.
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Given the added baggage that comes with these delivery apps,
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my top tip here is to delete the apps from your phone.
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Now, if deleting it is too permanent or too extreme,
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you can still change your environment
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by making as many speed bumps as you can,
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to slow down the pace of purchases.
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Maybe link the app to a debit card
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with a small preset amount of money.
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You can also delete the app after every purchase,
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so that it's not enticing you at all hours.
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Now let's talk about shopping.
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Let me be clear:
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I'm not saying that you should never go shopping.
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What I am saying
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is that I encourage you to buy the things that bring you happiness.
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Research has shown that when you spend money on others,
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when you spend money on experiences
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and when you spend money on the things that save you time,
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these expenses make you happier.
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And I know retail therapy may seem great,
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but researchers have found that spending the same amount of money
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on someone else,
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even as little as 5 dollars can make you happier.
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So get that T-shirt for your friend instead of yourself.
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Make a donation to a place that you really love and support
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or buy an experience for yourself.
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Try something for the first time.
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And if you're overwhelmed,
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and you're burning the candle at both ends,
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know that it's OK to invest in something that will free up your time.
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Hire a local high schooler to mow your lawn
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or get someone to clean your house.
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These may be a little pricey,
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but the time you save will be worth every penny.
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By making these small changes to your discretionary spending,
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you can not only spend less
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but actually get more happiness and satisfaction
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from your spending.
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It can mean a life with fewer guilty pleasures
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and less regret.
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Now who wouldn't want that?
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