What Are the Most Powerful Habits You've ACTUALLY Adopted for Huge Results?
02-23-2016, 03:07 AM
My most powerful recent habit: Simplification of daily expenditures.
The Problem
I am someone who has aspirations of keeping my finances in check and building up a significant savings cushion. However, actually achieving this goal is another matter. I previously tried some of the online expenditure apps and made excel spreadsheets to track spending but could never stick with the habit.
Why is this? For me at least, consciously thinking about every little purchase or expenditure is too unpleasant. It makes me stressed. It makes me beat myself up about buying things. It also takes away precious time and energy from more productive endeavours.
Let's always remember a central concept:
Time = Money
Tracking each pack of gum or bus ticket purchased is NOT a productive use of time. With respect to a previous poster, neither is turning to DIY (unless you actually enjoy it which is different).
This is time that you could be using to make more money or self-improve. It's an unnecessary mental drain. OK then, but to maximize savings you still have to limit spending somehow right? So what is my approach?
My daily habit explained
I casually mentioned doing this to BB offline and perhaps didn't fully flesh out the habit. It's so simple as to appear foolish - but there is solid logic behind it.
SPEND ONLY THE CASH IN YOUR WALLET
- Each day, place a fixed amount of cash into your wallet. That is your budget for the day.
- As an example, I currently live in Bangkok. In my experience, around $20 in my wallet easily covers all daily expenses and then some. This includes food, groceries, cafes (I work online) and transport. $20 x 31 = $620 monthly. That's a nice low average spend per month. You will obviously want to adjust this amount as per your location.
- Stick to a realistic daily amount. Not so little that you will be miserable, but not so high that you are wasting money. If in doubt, start out slightly higher to ingrain the habit. You can always bring the amount down slightly at a later point.
As an example of this last point, I could probably lower my daily spend to $10 in Thailand and get away with it. Why set it at $20? Don't I want to save more money? From personal experience, I have found that going too low starts to make me think too much about money again. It makes me feel guilty about "unnecessary spending" such as taking a taxi when I'm tired. The simplified "CASH IN WALLET" approach gives me some breathing space. The only relevant question is "Do I have enough money on me?" If so, I can do whatever I feel like without any guilt or negative repercussions.
- If, at the end of the day, you have some money left over then keep it in your wallet for the next day. The money placed in your wallet is for spending and nothing else.
- Conversely, it's 7pm and there's no food at home but you already spent all your cash? Tough luck. Go to bed on an empty stomach tonight. Trust me, it won't kill you.
- Leave your credit card at home. It makes overspending too easy.
- Note that this habit does not include paying for bills or other unavoidable expenditures. It's just for putting daily spending on autopilot.
The benefits
I have applied this approach for a couple of months now and it is already boosting my bank balance. The technique also saves on both time and energy as well as lowering my stress levels. The concept is similar to that of wearing the same clothes everyday (ala Steve Jobs). It preserves your limited attention for the things that matter.
You can still spend more sometimes - for example, I take out a bit more money before a date and make a note of it somewhere. If I tried to strictly adhere to daily limits without exception then I'd be dating a lot less women. The idea is to limit spending for a normal day, not to become obsessed with money.
The same concept goes for planned purchases. As men, if we are buying some new clothes or a phone then it's not usually on impulse (a critical difference between the sexes, I think). This comes separately from your daily spend. Simply make a note of this purchase for your records.
So, if you want to go to Vegas for a friend's stag weekend then go ahead. All you need to do is simply note this extra item down for your records. Don't sweat the small stuff, but put a cap on your daily spending.
Let me know if there are any questions!
The Problem
I am someone who has aspirations of keeping my finances in check and building up a significant savings cushion. However, actually achieving this goal is another matter. I previously tried some of the online expenditure apps and made excel spreadsheets to track spending but could never stick with the habit.
Why is this? For me at least, consciously thinking about every little purchase or expenditure is too unpleasant. It makes me stressed. It makes me beat myself up about buying things. It also takes away precious time and energy from more productive endeavours.
Let's always remember a central concept:
Time = Money
Tracking each pack of gum or bus ticket purchased is NOT a productive use of time. With respect to a previous poster, neither is turning to DIY (unless you actually enjoy it which is different).
This is time that you could be using to make more money or self-improve. It's an unnecessary mental drain. OK then, but to maximize savings you still have to limit spending somehow right? So what is my approach?
My daily habit explained
I casually mentioned doing this to BB offline and perhaps didn't fully flesh out the habit. It's so simple as to appear foolish - but there is solid logic behind it.
SPEND ONLY THE CASH IN YOUR WALLET
- Each day, place a fixed amount of cash into your wallet. That is your budget for the day.
- As an example, I currently live in Bangkok. In my experience, around $20 in my wallet easily covers all daily expenses and then some. This includes food, groceries, cafes (I work online) and transport. $20 x 31 = $620 monthly. That's a nice low average spend per month. You will obviously want to adjust this amount as per your location.
- Stick to a realistic daily amount. Not so little that you will be miserable, but not so high that you are wasting money. If in doubt, start out slightly higher to ingrain the habit. You can always bring the amount down slightly at a later point.
As an example of this last point, I could probably lower my daily spend to $10 in Thailand and get away with it. Why set it at $20? Don't I want to save more money? From personal experience, I have found that going too low starts to make me think too much about money again. It makes me feel guilty about "unnecessary spending" such as taking a taxi when I'm tired. The simplified "CASH IN WALLET" approach gives me some breathing space. The only relevant question is "Do I have enough money on me?" If so, I can do whatever I feel like without any guilt or negative repercussions.
- If, at the end of the day, you have some money left over then keep it in your wallet for the next day. The money placed in your wallet is for spending and nothing else.
- Conversely, it's 7pm and there's no food at home but you already spent all your cash? Tough luck. Go to bed on an empty stomach tonight. Trust me, it won't kill you.
- Leave your credit card at home. It makes overspending too easy.
- Note that this habit does not include paying for bills or other unavoidable expenditures. It's just for putting daily spending on autopilot.
The benefits
I have applied this approach for a couple of months now and it is already boosting my bank balance. The technique also saves on both time and energy as well as lowering my stress levels. The concept is similar to that of wearing the same clothes everyday (ala Steve Jobs). It preserves your limited attention for the things that matter.
You can still spend more sometimes - for example, I take out a bit more money before a date and make a note of it somewhere. If I tried to strictly adhere to daily limits without exception then I'd be dating a lot less women. The idea is to limit spending for a normal day, not to become obsessed with money.
The same concept goes for planned purchases. As men, if we are buying some new clothes or a phone then it's not usually on impulse (a critical difference between the sexes, I think). This comes separately from your daily spend. Simply make a note of this purchase for your records.
So, if you want to go to Vegas for a friend's stag weekend then go ahead. All you need to do is simply note this extra item down for your records. Don't sweat the small stuff, but put a cap on your daily spending.
Let me know if there are any questions!
PM me for accommodation options in Bangkok.