News

NewsTry a Spending Ban
Try a Spending Ban

Try a Spending Ban

Tags: Tips and Tricks
Last updated by Someone on

A couple of “big ticket” bills have popped up on my radar recently including major roof repairs needed after a recent storm and the discovery of termites in the garage. It’s times like this that you understand the value of an emergency fund… I wish I had one! 

While I try and work these expenses into an already tight family budget, I’m clutching my wallet shut in an effort to curb spending. I get my coffees from 7/11 for $1 each and I’m now finally working out which eftpos transactions incur a fee and which do not.

Maybe it’s time to turn the thinking around from saving money (something I struggle with) to stopping spending.

American author Emily Guy Burkin’s book “End Financial Stress Now” is based on this idea that in order to reduce spending you need to challenge what you really need on a daily basis.

Emily and her husband went on a spending ban in January 2012 to pay for a domestic holiday. The ban only lasted a month, but the couple learned a lot about their spending habits.

If you’re planning a spending ban, Emily recommends you follow these simple rules.

1. DECIDE HOW LONG IT WILL LAST

First-timers should keep their timeframe short but not too short. She suggests starting with 21 days.

2. DEFINE 'NECESSITY'

When you’re on a spending ban, you should only spend money on necessities like food and medicine.

3. PLAN AHEAD

There are likely to be some unforeseen expenses during your ban if you don’t plan ahead. If you forget about the wedding gift you were supposed to buy, or just remembered that tomorrow is Mother’s Day, you’re not going to have time to shop around.

4. KNOW WHERE THE EXTRA MONEY WILL GO

Having a goal makes it easier to see results and you are less likely to spend it.

5. AVOID THE PITFALLS OF GOING ON A SPENDING STRIKE

Don’t be tempted to go on a buying binge before you start the ban or a celebratory spending spree when it’s over.

Have you tried a spending ban? We'd love to hear your tips on how to stop spending

More info here

Originally posted on .

Join the conversation

FiftyUp Club
Try a Spending Ban

Share your views with other members. 

Want to leave a comment? or .
Read our moderation policy here.
Peter
Peter from NSW commented:

The whole idea is to live within your budget. I certainly do. My wife on the other hand, seems to think that certain things are necessary, such as shoes in black and the same set in blue. The same with trousers and shirts. (I know it is a female thing) 

Grace
Grace from QLD commented:

I do not buy fast/junk food. I do not buy coffees but make my own at home with a drip filter machine. Only when on holidays do we go and get a coffee and cake somewhere (not every day). We get a self-contained unit and cook our own food on holidays - we like it better than eating out. Those are only some of the money savings we have done forever. We have paid off our home because we made that a priority and sacrificed many things during that time. I also used to be an Op-Shop queen. :-) We are NOT rich but pay our bills first. I also 

Someone
Someone from NSW commented:

When the GFC started in 2008, we had to learn to live within our budget, just to survive. We had so much coming in and we had to live within that boundary. T 

margaret
margaret from NSW commented:

Mmm, sounds a little drastic although certainly the start of a good idea. For some there could be more long term benefits from having a small amount to spend, in keeping with your budget.For some this could be $25 a fortnight, for other a little more. This means that at the end of the period you are less likely to say things such as Really great idea but so joyless. I could not even have my Saturday coffee date with my best friend and felt really embarrassed when they were collecting for Jenny's baby. Don't think I would do it again. This is a little like those diets where the weight is back very quickly after the diet ends, because it was not a diet you could stick to, and did not really change your eating to a realistic diet that you would stick to. By having a small amount of money to spend you must think where and when it should be spent. That is you realize that the money spent on a a cup of coffee because you have 15 minutes to fill in, should be kept for your Sat. coffee date which gives you more pleasure for the money spent. This encourages you to think about discretionary spending and how to restrict it every week of the year, because no matter how much money you have, or how little money you have, if you do not FEEL you are in control of that money and your own greeds and needs, you will never have enough money. 

Comment Guidelines