“We must consult our means rather than our wishes.”
George Washington
Take a week to pull back from discretionary expenditures, and focus on what really matters. This week-long spending cleanse can make you a better financial father.
Allow the Needs to continue, while holding up on the Wants. To be sure – this is not sustainable. We’re not advocating that you live like a miser. Every now and then, however, we need to go into monk mode.
This will bring about a renewed approach and appreciation for what really matters to us. Taking a spending cleanse can help guide your future personal financing.
Check the Receipts
Start by looking at your budget. Don’t have one yet? Visit our Resources page and get started today.
When reviewing your budget, start by splitting your outgoing cash, aka expenses, into the Necessaries – Non Discretionary expenses – and the Wants – Discretionary spending or expenses.
For nearly all of us, we need to pay for our housing, utilities, phone, and food. If you’re in the 91.5% of the U.S. population that owns at least one vehicle, add your payment, insurance and gas to the Needs. Include your own medical necessities, medications and physician/therapy visits. Add child-based non discretionary expenses: school or daycare, their own medical needs, clothing, food, and extracurriculars.
The Wants is where we can start to slash. Going out could be a large expense that we can cut back on. Sure, we want and even feel the need to go out and blow off steam at the end of a long week. However, you can stash a significant amount of cash by not going out to eat or to the bar. Instead, you could Netflix & Chill, or even read that book collecting dust on your nightstand (psst, read one of these books).
Look at your non-grocery food bills. If you’re at sweetgreen every day for lunch, then you’re dropping about $60 per week on kale. No judgment here, but you can save that money and make your own lunch for about a third of the price per week.
Look at your groceries. Ok, so this is kind of a Need and a Want. Can you trim that weekly grocery budget by going to a different, cheaper store? Can you buy generic brands? If it aligns with your health goals, you could even buy less groceries that would otherwise go to waste or to your waistline.
Document Your Expenses
Use a budgeting app, like Mint, to track and plan out your budget across your multiple accounts.
Use your banking products to organize and plan your budget. If you bank with Chase, they offer a nice budgeting product to manage your budget.
Use an app like Rocket Money to find and cancel unused subscriptions.
Don’t Go Full Stop
Try to commit to a spending cleanse for one week. That’s seven days of avoiding your discretionary expenses. Make your own lunch. Stay home on Friday. Go somewhere fun that costs you no money on Saturday.
It sounds boring because it is. So too is working out and eating better, or reading and getting a good night of sleep. The best things for you are often the most boring. You are taking on the hard, boring stuff here, Dad. This difficult week will lead to becoming a better, smarter financial father.
Visualize Your Finish Line
Find the primary thing keeping you going on this financial journey, and keep it top of mind. It could be a separate account for an upcoming trip that you’re saving for. This could also be your child’s 529 account as you can save for their education.
To make your finish line tangible, you could take out all the cash you would otherwise spend on discretionary expenses. Holding that money in your hands and placing it in an obvious place can be a powerful visual. That money is there, right in front of you, but it can’t be used or put back into an account until the end of your cleanse week.
Keep Going
Consistency is vital to succeeding at anything we do. Married and divorced dads certainly know that doing the tough stuff in your marriage day after day is what keeps it going. Sometimes, despite our best efforts, things fall apart. Nevertheless, when we put in that work every single day, we make positive progress.
Consistency is important to succeeding in your spending cleanse. Days three through seven of your spending cleanse are going to be tough. We often break at these crucial points in our path. We need that drink at the bar after a hard day at work. We need to go out to lunch because another sandwich is repulsive.
To avoid falling off the path, keep your eye on the finish line. Look at that pile of cash we discussed above. Or keep your child’s 529 plan open in your browser. Have your finish line in front of you to avoid veering off course.
You could also try this: Transfer each dollar that you don’t spend on a frivolous purchase into a separate bank account. Do it every day, or every other day. You can be inspired to continue as you see that amount grow.
Need some inspiration to get started or keep going? Visit our Inspiration page here.
The Outcome
Taking a step back to track, adjust and halt your spending can help you see what truly matters. Lunch out everyday may not be a habit you even cared about! The subscriptions you didn’t know you still paid for? That’s reclaimed money back in your pocket!
At the end of the week, take that money and spend it on something you truly want. Better yet, stick it in your savings, IRA, trading, or 529 account. It’s up to you.
We get it – this is not easy. If it was easy, everyone would do it. But, Dad, you’re not just everyone. You are far more.
