We've all heard that one good way of getting a handle on where we can eliminate unnecessary expenditures is to track every penny we spend for three months. I've done it, and while it was an interesting exercise, there weren't a lot of surprises for me. It was a lot of work tracking every expense and hounding other family members to keep receipts.
I came across a very sensible alternative in "Grow Your Money - 101 Easy Tips to Plan, Save, and Invest" by Jonathan D. Pond. He offers three strategies for saving.
The Platinum Strategy: Focus on saving rather than on what you are spending. By socking more funds away than you are currently, you will automatically be aware of how you are spending and where you can make cuts. Gradually increase the amount you are regularly putting away into savings.
The Gold Strategy: "If you are starting from scratch, start small". He recommends starting with 1% of your salary or $20 per week, and once you are accustomed to that, increase the amount. Just be faithful and consistent to your savings plan.
The Silver Strategy: Pay with cash. If you can't save, being aware of every expenditure by using cash will open your eyes as to where your money is going.
I think conversion to a frugal lifestyle comes down to living in the moment - being AWARE of what we are doing with our time and money, how we are feeling when we spend, what our hopes and dreams are for the future and how the NOW affects the future. How often do we mindlessly hand over our credit card and not even check the total of our bill? It's like we are on automatic pilot. Living a life in the moment, with full awareness, is its own reward. Let's be present in our own lives.
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