Start a Spending Fast Next Month | Week 2


How did Week 1 go?  Not so bad right?  Well Week 2 is going to be a little more tough, but still not too bad, I promise!

Now that you know what your necessities are, it's time to look them over. How many of them are really luxuries that you're trying to sneak in? Come on! Cross those off the list. Do you NEED cable, and Netflix or could your time be better spent doing something else? You're striving for bare minimum! Just think, if you cut your $150/month cable to a basic cable package at say, $40/month, by next year you could have saved $1,320! Thinking about the big picture is KEY!

Next, it's time to figure how much you're necessities will cost and once again trim the fat! A good way to determine how much to budget for each necessity item is to go back over your last six months worth of payments for that item. Add up the total of each individual item and then divide by six. This will tell you, on average, how much you spend on that item in one month and will be your new "budgeted amount/projected cost" for the remainder of your Spending Fast!

So, did you find those numbers? Good, write them down on the list next to your necessities.

If you have to spend that money, decide if you NEED to spend that much? Do you need a smart phone with Internet package, or could you go back to a non-smart phone and use your Internet at home or work? You can buy a $10 flip phone and then buy a Pre-Paid plan with unlimited talking and unlimited texting for only $30/month. A typical smart phone package costs about $100+/month. That's $840 saved during the course of a year!

I mentioned that I consider my hair highlights as a necessity.  Some people think it's silly, but I need them.  I have been able to cut the cost of expensive salon visits a few ways. Do you know how much your stylist charges for a trim?  Mine considers it a "cut" and charges $35+! So I got rid of those. My hair is long enough to where my mom can trim it for free and it looks fine.  I also only get my hair done every eight weeks instead of every six weeks, and I only get a partial highlight, not a full. Those little changes cut my cost by about 60%!

Make your cuts, but make sure they're realistic. No, you probably make it through a month on one tank of gas, but you could buy a 30-day bus pass for the price of one tank of gas.  Again, though, this would require planning ahead.

Be realistic, but be strict.

Think of how much you'll be spending on that item over the course of a year. Is it worth it, or would you rather have that money in a savings account earning interest? (spending $15.00 on Netflix a month equals $220 a year!)


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