Talking to @bozz a few minutes ago, he mentioned having "spending freezes" at times, just to get back on budget. He also mentioned that it feels more like a reflection of his ability to manage that budget, rather than something that just happens to be needed occasionally. But, the conversation got me thinking about the freeze part, and perhaps how we should inbuild this into our yearly habits.
For instance, some cultures will have fasting periods where they do not eat during the day, over some period of time. This supposedly helps the body heal, and there is plenty of evidence for intermittent fasting being something many of us would benefit from, in a world of suck much excess. There is also a similar practice in Finland, though it is less formal than the religious ones. It is called "Tipaton Tammikuu" (Dropless January), where many people choose to go alcohol-free for the start of the year, largely because of the excesses of Christmas, and the pressure of newly-minted resolutions.
However, if "going without" for some period of time helps us detox, realign and give a leg-up to starting better practices, shouldn't we do the same thing with our finances? From a habit perspective, I think it would have more impact than trying to get started trying to avoid spending in other areas, as it would mean that there could be a boosted start, which if done for long enough, will provide the evidence required to keep doing it a bit longer.
If the spending freeze was a month of no extras, it will probably take time to return to overspending after, meaning the no spending period will be drawn out more than a month. It also provides evidence of what is actually necessary. Avoiding one takeout meal here and there doesn't provide that evidence consistently, but missing a month's worth likely increases the chances to reduce the frequency for the rest of the year. This means that the "fasting period" will have impacts for longer than the period itself.
A lot of our excess spending is probably habitual, and triggered by some set of circumstances. For example, getting takeaway might be something that is done when tired, when no one can be bothered cooking. If something was pre-prepped in the freezer though, that might be enough to overcome the hurdle. If this is supported by the added pressure of "a month without" it means that the planning will have to be done prior to the trigger event. Planning ahead is great for supporting the changes we want to make, because it invests us into following through.
There is also another side of this that I think is worth exploring, and that is the method of "testing" something to see if we want to improve at it. When starting a new hobby, it is better to do the research and then spend a solid month putting in an hour or two a day to see firstly if we like it, and then if we improve enough and want to continue improving. In a month of solid effort, it is possible to learn a new skill to a relatively good level. This means that even if not continuing, the time investment isn't wasted.
And just to finish up, @bozz mentioned that these freezes felt that it was more about his ability to manage the budget. I think this is something to really note, because if it is the case, spending time one once a year to realign means also being able to adjust the ongoing budget plans on the fly. This doesn't necessarily mean cutting back, as it could result in reallocation to where there is more enjoyable spending. I for example don't really enjoy takeout when it is due to tiredness or laziness, but I do enjoy it when it is coupled with quality time with family or friends. Prepping for the tired times, so I can get additional value in the quality times, makes sense to me.
I don't know if having a month of fasting for spending would lead to actually saving more, but I do think it could lead to an improvement in what we are spending on. Less of it would bleed into the useless, and more into what we actually value, whether it be to save, generate more, or enjoy ourselves in other parts of our life. Maybe some are already doing this, but I haven't heard of anyone willingly taking a month of spending cuts to evaluate and align their finances each year.
How many would?
Taraz
[ Gen1: Hive ]
Posted Using InLeo Alpha
We have had no-buy months in Saturday Savers Club every year since we started, people seem to really relish them even if they didn't feel their spending was out of control or they needed to cut down.
Next year, we've planned no-buy months for March, June and October (we try and avoid festivals, holidays and the start of school). Actually, they're low-buy rather no-buy months.
As you suggest in your post, we have a couple of weeks preparation where participants set out their no-buy rules and most people have an aim (in my case, stopping every trip to the supermarket for a pint of milk costing 30 GDP). Different people do different things according to their circumstances, but pretty much everyone saves quite a chunk which maybe goes into their emergency fund or towards their savings goals. I think the highest amount saved in one month was about 1,000 USD but it could have been higher.
When we were planning 2025, the first thing Club members said they wanted was no-buy months and lots of them (well, three) 😁.
And you are right, everyone does become more discriminating about how they are using their resources. It's lovely every year seeing what people have achieved and how their habits (and in some cases, their lives) have changed.
Here's the FAQs for the year just closing for anyone that is interested. We'll be launching 2025 on Saturday 4 January.
I haven't heard of this.
Just got to the end and saw the link :)
I don't know about you, but I think being on Hive has made me more discriminating about lots of things - and less discriminating in the case of lots of other things too!
That's interesting. What sorts of things?
We've actually never been in a position where we haven't been able to pay a bill due to my "mismanagement", but what happens is we don't end up putting as much money in savings each month as I would like. I want to build up a decent emergency fund so that if we weren't able to pay a bill one month, it wouldn't be a big deal to dip into savings to pay it. My wife and I actually don't spend that much money, but occasionally things pile up due to the time of year and how our pay periods fall and things get tight.
Yep - I understood this from past conversations. It is less "dangerous" but still is a "failure" in the management, at least in your eyes :)
I think most people struggle with money management - and I am definitely one of those at times. Sometimes I am great with it though. I don't know why I can't be more consistent. However, I am going to try your (and others) home management skills now that I have the time and desire for a reset.
I have a master spreadsheet that has different sheets inside of it. Each one tracks a different metric. Sometimes they work out for me, other times I think it's just dumb luck!
It's not January and I'm not in Finland, but I gave up alcohol and street food for a few days. It's amazing how little money you need to buy healthy food. Today I cooked 1 kilogram of beef heart for 1.5 dollars and bought 3 kilograms of vegetables for 1 dollar. The whole family ate delicious and healthy food today for the price of 1 cup of coffee. Plus we had our own apples and berries from the freezer.
Beef heart? How do you cook it? I don't think I have ever eaten heart before.
Trim off the fat and cut the heart into pieces. Cook for 2 hours, adding salt at the end of cooking. This is a superfood, a vitamin bomb, the heart contains several times more B vitamins than beef, one and a half times more iron and many essential microelements.
I love it with sauerkraut. When I eat a lot of heart or beef or 0.7-1 kg of poultry, the next day I feel a surge of strength in my muscles (my weight is 115 kg). Without a large amount of meat (every 3-4) days, my body feels uncomfortable.
If intermittent fast means reducing what we eat, I do it sometimes to prevent my belly grow bigger :) If talk about finance, I freeze some of my spendings whenever I am close to exceed my credit card limit.
I think the active interruptions that break our habits can be a good thing. Would be interesting to randomize it - like sometimes at a shop, the card just doesn't work on some types of items :D
I sometimes spend months if not years without drinking alcohol. Recently our neighbour and I drank a glass of wine. Now I will likely not drink again for some months. It seems that I could make a decent finn...
If I would be richer.I think this is a unique {novel) idea, which has great merit.
I think that I agree that the true power of this exercise is the fact that you have the power to do it, and the time and motivation to rethink your spending and thus your savings. But perhaps most importnatly reassess and prioritize what your spending on and why. This truely shold lead to less spending on the frivilous and maximizing the spending on the valuable. And whether this be on assets which bring you the gift of more money or things which give you more time, the focus is on value, and that makes it all worthwhile or better put perhaps: valuable.
This notion is a gift,
Thanks
Well fasting might limit spending for just a period to the end of the fasting. Spending limits really have to deal with discipline and goals. I think if a person has a specific goals in mind, in attempt to meet up to it, a level of financial discipline must be employed. So acquire financial discipline. Well, I think 🤔 I will drop a piece on financial discipline.
Hmm spending freezes is such an interesting concept, but personally I don't think it would work for me. I feel that I am at a stage where I am mindful what are my needs and what are my wants, and I don't need to set aside a "monthly budget".
Me too. My excess spending happens when Splinterlands drops new sets and promos. Definitely triggered, and basically a habit at this point. Please make them slow down!
I absolutely HATE takeaway. If I'm going to pay a premium for someone to make my food for me, I want to eat it hot and fresh at the restaurant. I can't stand it when I pay good money for takeaway, only for it to arrive back home lukewarm and needing to be reheated. LAME! DISLIKE! Do not recommend!
I definitely have done this, maybe not a month at a time, but for sure a few weeks at a time. I know when spending is getting out of control, or when I need to save up for more Splinterlands promos! I'll only go out to the club if I can get comped for a show, and I will eat at home as much as possible. Sometimes I will "retire" a credit card for the month, or only use a set amount of cash I took from the bank to get myself back on budget.
Honestly, I really like these types of periods to go without because it allows me to focus more on myself. I eat healthier because I am prepping the food myself. My sleep schedule is better because I'm not out all night all weekend going to every show (but still a lot of shows because club is life and guest list is free). I tend to have more time to reflect on myself and my habits since I am not going out as much in general to save money. Finally, I spend quite a bit of time just walking around the city, around the parks, and enjoying the free things available to me in NYC.
And I'm looking for valuable things to spend on while the value of fiat hasn't eroded away to a point that it would hurt to spend. Artworks, books, collectibles..., metal, tools, painting materials..., books..., seeds..., equipment..., cheap enduring stuff that would be useful. Useful where? In the afterlife?
Saving some, too, but not feeling comfortably about it.