Chapter 23 from the CHANGE JOURNAL »
You can spend hours philosophizing about money. Or not. Instead, simply master a few tricks to maintain a pragmatic, relaxed relationship with the dough, bucks, loot, bread and payola.
1) Try paying in cash sometimes
Paying by card is convenient. When it comes to the overview, however, we sometimes lose control: What sum has already been spent, and how much is left on our bank account? You may even have already experienced how different it feels to pay 90 euros in cash or by card. Paying cash can be helpful if you’re trying to save more.
2) Wait for the second purchase impulse
Sometimes we see something and we just “have to” have it. But a few moments later, doubts appear: Do I really need that? Is it really such a bargain? Is it a good deal? It helps if you can resist the immediate impulse. Why not take a stroll through the shop, have a cup of coffee and give it a second thought? If you do actually buy that item, make sure to keep the receipt. That way, you still have the right to return it later.
3) A 30-day waiting period before larger purchases
A TV set, a piece of furniture, a car: Some purchases are going to be around for a long time. So it’s a good idea to consider the pros and cons before you decide. Compare them – and let 30 days go by before you spend so much money. This time will help you make up your mind about the relevance and implications of such a purchase. While you’re thinking, you may also want to look for the best deal. In the meantime, we are often distracted by other “bargains” that we “absolutely need”. And then the game starts all over again.
4) Track your expenses!
Do you actually know how much money you spend each month? And what you spend it on? Watch your own behavior. It doesn’t matter whether you do this the old-school way – with pen and paper – or via an app. Sort your expenses by basics such as housing, food, car, insurances. Also try to differentiate between these necessities and optional spending, such as going out, shopping, culture, luxury goods, etc. I bet those will be exciting lists! If you absolutely agree with every expenditure on the lists – great! Then there’s obviously no need to take action. But if some costs seem horrendously high and certain items awfully superfluous, then you know where to curb your spending in the future.
5) Simply save
Somehow you find it hard to put a little on the side? Just do it! Determine a certain percentage of your monthly earnings (for example, 1%, 5% or 10% – as you wish) and regularly transfer this amount to a separate account. That’s all.
6) Save yourself rich
You can also try another option. Start a daily list: Whenever you consciously decide against buying something on impulse, write down how much you just saved by not making the purchase. Then decide once a week how much of those “virtual” savings should go to the bank.
I bet you’ll save more than ever.
Get your template here to track your savings.
