I had some readers over my house the other day, and one of them commented that she found my recommendation of You Need a Budget to be useful. She asked if I could write a little more on budgets and finance both in the context of miles and points and generally.
One thing I love to do is to gamify situations. Rather than feel like I’m trudging through paperwork, I like to feel like I’m trying to beat the system to achieve a certain goal. (That’s part of the reason I like couponing/deals/miles/points so much).
One “game” I’ve been playing with myself lately is a $100 per week game to try to re-center my brain financially. I’m trying to see if I can spend under $100 per week.
But first, I want to explain why I’m doing this. My financial situation has changed so much in the last decade. Ten years ago, I was in graduate school and trying to balance jobs that actually paid money (but gave me no experience towards my career) and internships that paid no money (but gave me that needed experience).
I ended up doing classes, internships, and bartending in the in between times, which made money pretty tight. I remember trying to budget out getting to go to a happy hour with a friend once in a while but found the $3.50 / drink pretty hard to swallow (get it?) when that could buy actual groceries. I turned down a lot of invitations to go out, and sometimes food shopped to get the most calories I could per dollar.
That was the more extreme side. After I started making more money, I started being able to go to happy hours more frequently, but still focused on places with cheap drinks and appetizers.
Now, I don’t have to worry so much and sometimes find myself taking short cuts that cost me a little more financially, but make things a lot easier. But I know, in the end, this money adds up to a lot more I can be saving.
I’ve started mentally comparing, let’s say, the $5 more I pay for a two-pack of conditioner through Amazon (vs. buying in the store) to the $5 I used to agonize over for a drink plus tip when going out with friends.
So to help me remember how those little amounts can add up, I’ve started playing a weekly budget game. I’ve taken all my regular bills out of the picture and am spending a few weeks trying to stick to $100 or less. This includes food, beauty products, clothing, and entertainment. (Also, things for my dog like treats, grooming, etc).
How I do it
I downloaded an app called, My Weekly Budget. It was $0.99, so that was the first thing I logged into it.
I chose this app because it was totally simple. No syncing was required. No complex systems. You manually log in what you purchase, and it tells you much you have left. If you have money left at the end of the week (or went over), it asks if you want to use that to affect how much money you have.
Whenever I’ve bought anything, I’ve logged it into the system.
I allow myself a cheat. Any found money is free money. So it has encouraged me to turn in my coins and clean the house in search of more. Found food is also free food, so I’ve been eating the items that have been hiding in the back of my freezer.
I’m iffy on whether or not I should have logged my bronchitis medicine this week, but I ultimately did because that would have been a huge shock to my budget way back when.
What I learned
This experiment has definitely been enlightening for me. The biggest way has been through lunches.
A lot of times, I’ll forget a lunch or get too lazy to bring one and will get something delivered. That’s about $15, which would be a significant chunk of my budget. It’s made me remember more (and to get something low-cost I can use over multiple days), or run to the grocery store from my office for something cheap.
I’ll drive or metro over taking an Uber. I used to Uber when I got drinks, but now I’m also drinking less since that can eat up my budget pretty quickly.
I’m doing price-comparison shopping rather than just buying whatever Amazon has. For example, air filters turned out to be so much cheaper at Home Depot, but I had always been getting them from Amazon without checking anywhere else.
I’m not going to stick to $100 per week forever. Groceries add up, for example, and I’d like to eat more than just chicken, eggs, and whatever else is on sale. Plus, I did this when I wasn’t traveling, so I didn’t have to eat out.
But it’s definitely made me question a lot of my habits. I can still take an Uber, but I don’t have to take one every time. I can decide to go out during happy hour instead of later in the evening. I can stop at the store more for items instead of getting them online. I can be more frugal when it comes to lunch time dining.
The other huge cost-savings is that I got very good at doing my own manicure and pedicure. I’ll save the spa trips for a good massage when I need it, rather than hop in whenever my nails are chipped.
But I think the biggest lesson I’ve pulled from this is simple:
There’s a huge difference between $3 and $15.
I know it sounds silly, but those numbers never really felt too different. They were both “not that much”.
It has made this difference mean more to me than it had in the past. A $15 lunch is expensive, even if you can afford it. A $15 lunch affects your budget so much more than a $3 lunch does. And that $12 each time can really add up in savings.
It certainly added up in helping me hit my $100 budget each week.
Have you done anything like the $100 challenge? How did it change your shopping behaviors?
If you haven’t, would you consider doing it?