Money Musings 💠When spending is a struggle…
When I started my money journey, I was spending more than I wanted to. Much of the work I did was to reel that spending in.
What really worked for me was:
Understanding the opportunity cost of my spending. What are the things I’d want to be doing with my money if I made a conscious and intentional choice? Also, what could happen if I invested that money and let it grow and compound?
Having clarity about where my money was going. Without that, there were no decisions to be made.
Really connecting to my goals. I came to see how saving money for my short and long-term goals would bring me happiness. Having a plan wasn’t restricting (most of the time) but a tool to give myself what I wanted most.
I got really good at saving. BUT there comes a time when you want to spend money or you’ve hit your goal and it's time to spend that money.
In the personal finance world we focus a lot on saving money, which is very important, but we don’t talk enough about spending. When it comes time to spend, it can be really hard to do.
I’ve experienced this in my own life and I have also seen it with clients. When people get really good at saving, it can be especially hard to spend.
Now this is also a problem. Because what’s the point of having money if we don’t enjoy it? Also, when we work hard to save up for a goal that’s really important to us, it’s important to cash in on that goal.
That might be a vacation you saved up for or even a big long-term goal like retirement. When someone has been saving up (but really investing) for retirement their entire lives, it can be really hard to switch modes and start taking the money out in retirement.
If this feels like you, here are some things to think about.
Awareness is key. Knowing you have that tendency makes it so you can look out for it.
Decide on an amount that’s enough. If you have your goals laid out and you are contributing to each of them how you want to, then you can feel really good about spending money outside of those goals.
Start small. Start by treating yourself to things that cost little or no money. If this is hard, stick with it. It takes time to get used to it and it’s completely okay if you don’t enjoy them at first. Keep going.
Use the money for your goals as intended. Unless you’ve had a big shift in priorities, trust that you’ve saved for a goal in the way you want. Allow yourself to spend that money as intended. If it’s money for a vacation, TAKE THE VACATION. If you’ve wanted a new couch and you hit your goal, it’s time.
Check in on your goals. This one puts my mind at ease. Am I on track for retirement? Do I have my rainy day fund in order? Looking at the money I have saved for my goals gives me comfort in spending the money I’ve intended to spend.
Do you have a hard time spending money? If so, let me know. Or does struggling to spend money feel like a pipe dream? Let me know that too!
MONEY MOVE OF THE WEEK
GET RECESSION READY STEP #5 - THINK ABOUT OTHER WAYS TO EARN INCOME.
One of the risks of a recession is potential job loss or loss of income. Now, that doesn’t mean it’s going to happen or that it is even likely to happen (I have no idea) but one of the ways to prepare is to think about and start earning income from other sources.
Diversifying our income makes us less dependent on the main way we earn money.
Need to learn a new skill? Take an online class or ask someone to teach you.
Need some more experience? Ask your boss to join in on a new type of project.
Want to start a side hustle? Think about what you like to do and what you’re good at!
Hit reply and tell me about your ideas! You can also join the Fiscal Femme Slack Community to get a group of feminist money buddies to cheer you on.
YOU GOTTA SEE THIS
FREE FISCAL FEMME RESOURCES.
ICYMI, we have some amazing (and free) goodies to help you reach your money goals:
Our Slack Community. Get a fabulous group of feminist money buddies to hold you accountable, share resources and support you in your money journey. Plus, we added a consumer activism channel last year. We crowdsource and share information to take some of the work out of researching brands so we can make more conscious purchases.
Money Party Guide. Having money parties is the most important ritual for your financial well-being. In the guide, I walk you through how to have your own money party step by step. I also share the money party playlist - fun songs that will pump you up about money.
Online Shopping Calculator. If you are ever wondering “Should I buy this?” Answer these five questions any time and we tell you.
Some other amazing financial wellness tools.
You can check out all our free downloadable guides and tools here.