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Update On My August Experiment

12 August 2010 No Comment

As I mentioned in a recent post, I’m currently on an all-cash, low-spending month long experiment.  My goal here is to really see how well I can do with decreasing my spending for this month.

So far, so good.  Here are a few things I think are key to succeeding in such an experiment:

  1. First and foremost, you need your spouse on board.  Not only will not having your spouse on board probably blow your budget, but you need the accountability and you need your spouse to smack you in the face when you’re about to spend money on something unnecessary.  Thankfully, my spouse is completely on board and we’re doing this together.
  2. Next, food spending is really all about managing cravings.  Yes, I crave a Five Guys burger for lunch or some thai food for dinner often.  If you can manage your cravings, you can be content eating stuff at home for your meals or bringing your lunch to work.  This has been a very successful week in doing so.
  3. Cash envelopes are the best way to do this in my opinion since you can literally see the cash dwindling as you spend money.  You see how much you have left for the rest of the month.

My goal here is to save money.  Also, my goal here is to improve my discipline in some areas and this is definitely an exercise in discipline.

Also, as I think long-term with regards to potentially living on an online income, I need to continue to depress my spending while continuing to increase my online income.  Hopefully over time those lines will merge – at this point, I’ll be financially independent.

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