What I learned from a 30 day money diet
On Dec 31st 2019, my good friend Ruth challenged me to a 30-day money detox. She found out about this challenge from a recent article in the Toronto Star where the writer, Lesley Scorgie @lesleyscorgie, explained how a annual spending program can get people to kick off the new year on the right financial foot. Here are the ground rules of the challenge:
1- Stop spending money on anything that is not essential
2- Set up regular (daily or weekly) e-transfers into a savings account
3- Pay bills and budgeted expenses, i.e. rent, mortgage, gas, groceries
I like a good challenge. So on Jan 2nd 2020 , I began the detox and here is what I learned:
Week 1
I am back at work after a 3 week vacation and I decided to start my frugal month to cut all spending that was really non essential, this means that I did not get my daily coffee from my local coffee shop. I decided to have the free coffee at work, which turns out to be pretty good!
I usually allocate a weekly cash budget for things that I like to buy, so for this project, I decided to only use this cash for the challenge and not use my credit cards at all.
When friends suggested going out for dinner, I told them about my challenge and declined the offer. What’s interesting is that when I shared my detox plans, instead of going out for dinner we went for a powerwalk instead and had tea at my place after our walk.
By the end of the first week, I had only spent money on lunch (we have subsided lunch at work and it’s $3 dollars a day for AMAZING food) and that was it! For dinner, every evening, I made dinner with the groceries that I had purchased. At the end of the first week, I spent $9.30 for a coffee and muffin with my BFF who I met after work. This is $50-$60 less that I would usually spend a week.
Week 2
I am feeling good about starting the week with cash in my wallet. I am actually looking for ways to not spend money. I just purchased groceries and a few personal necessities, i.e. Shampoo, conditioner, TP.
Week 3
Bought gas for my car ( I usually fill up every 2 weeks) I had a $100 gift card for Ultramar Gas, so I used that so no money came out of my wallet.
As I have been good all week and for the first time in the month of Jan, I decided to do a small splurge with the money that I have saved and had a sushi dinner with my husband. It was $77.00 for an amazing selection of sushi. When I was paying for it, with cash (of course!), I must admit that I had a sense of sadness. On some level, I felt like I had failed. But I justified this spend by telling myself that I saved for 3 weeks and this was a little treat. Was the sushi essential? No, but we enjoyed the meal and the great conversation we had over dinner.
Week 4
I really feel in control and when I look at my statements from other months I see how much I spent on items that I did not need. I spent time with friends going to free museum days, and coffee dates, working out, working on this blog, spending time for my family and my husband.
Overall, I really enjoyed the additional control that I have with my money and decided that I will continue on this challenge for another 6 months. I don’t feel like I am cheap or missing out on anything, in fact, I feel more in control of my finances, and seeing the benefit from buying what I need.
Continuing the money challenge until June 2020
Now that it is March 10th and I’ve realized that this challenge has become my new money lifestyle. I’ve always been very good at saving money for retirement, investing, and being fiscally responsible. But I find that this self imposed frugality is more of a game. I am not depriving myself of anything, but I do realize that many of the things that I was doing with my money (getting daily coffees, magazines, lunch out, dinner out 2-3 times a week) are things that I really did not miss, and realized that these were things that I really did not need.
How are you planning to manage your finances in 2020?