Proverbs 21:20 - There is treasure to be desired and oil in the dwelling of the wise, but a foolish man spendeth it up.
If you ‘Google’ “save money by not spending”, all the usual “listicles” pop up:
8 ways to stop spending
Top ten tips to spend less
3 tips on how to stop spending
Yada, yada, yada …
Apparently, even Tik-Tok has gotten in on the trend with its own challenge. CNBC has the details here.
But all of it boils down to the same simple principle -
If you don’t spend it, you’ll still have it.
Then, put it where you can’t easily access it.
Duh!
That’s the underlying premise of all retirement plans. They (through the government) even go so far as to penalize early withdrawal.
Today, though, we’re just covering everyday things you can do to be financially sound.
Here are some basic steps to get a handle on spending
Most budgeting advice starts with Assess Spending. This is the very first step in sound personal and family money management. In order to “not spend”, you need to understand where your money is being spent.
This part may seem somewhat tedious, but if you’re serious, it must be done.
A post I wrote some months ago covers more detail in the budgeting process.
When I ask someone whether they budget, almost all say yes. However, when I ask what they use for their budget (software, program, spreadsheet, etc.) they just look at you like a deer caught in the headlights.
Clueless.
I get answers like, “Well, I have a pretty good idea of our finances in my head. I know what we spend our money on.
My three word answer to that is NO YOU DON’T!
When I reply that keeping track of their spending for just one month will totally change that thinking, they usually laugh.
I challenge them to try it and tell them that they will be blown away by the amount of wasteful spending they discover.
Key: If it’s not written down, you do not have a budget and you do not really know where all your money is disappearing to.
Pardon me for getting sidetracked there. Back to spending - once you know where you are spending your money in more detail, then you can begin your (not) spending plan.
The goal, of course, is strategic non-spending. We do need to spend on basic needs (after we assess our true needs). Those are non-negotiable. But, even there, we can always see if we can “buy for less”.
Second, when you know exactly where your money is going, you can then allocate occasional planned expenses for things you want or would like to do.
Not spending also means spending less
Having a written budget, tracking your spending, and having financial goals are proven ways to save money.
Here are a few everyday practical ways to meet your goals and budget allocations:
Severely curb eating out (includes take-out).
Make going out to eat a truly special occasion with family or friends.
Involve the whole family in making meals at home, including pizza.
Invite friends over to share meals and spend time together. Save over $40/month on just the pizza alone. Much more when adding up the cost of eating out.
Take lunch to work. One way to do this is to take leftovers or make lunch the night before. This could easily save $60+ week.
Cut the cable.
Get or keep one or two streaming services (Prime, Netflix, etc.) which you probably have anyway. Many times, the large mobile phone companies offer either free or discount membership to a streaming service for one year (Example - T-Mobile offered Netflix one year for $1/month. The next year they offered Paramount+ free for one year-. Savings could be $100 or more/month.
Buy a powerful Leaf Antenna (not affialte link) to easily pull in most over the air broadcasts (ABC, CBS, NBC, PBS, FOX and all their derivatives) from up to a 50 mile radius. If you live in or near any fair sized city, this will be no problem. Amazon usually has them for around $50.
If you’re a sports fan and your games aren’t on a major network, you can purchase ESPN+ on a month to month basis and get it just for the months needed. Last, but not least, all major college or pro teams have their own radio networks to at least listen.
Depending on where you live, there are multiple internet service providers offering DSL, Fiber, Cable (internet only), or mobile company services if available). Shop around for best deal.
Shop with a list and use ads & apps for deals
Bundle shopping trips to save on gas.
Use the GasBuddy app to find gas prices in your area.
As Proverbs 21:20 says - Be wise, not foolish in your spending habits.
In the next article, we’ll focus specifically on ways to save with home expenses such utilities, appliances, etc.
Until next time, my friends.