What Do You Use for Motivation?

When I wanted to start cutting down, I calculate what I spent a day (I added up all receipts and divided it by how many days in that month). At the time I did this, it was anywhere between $75-125 a day! That covered everything from grocery shopping to bday gifts to lunches/dinners out. This included anything I charged, used cash for or wrote a check for. This did not include bills like house and car payments.

So, I put myself on a daily budget - I couldn't spend more than $125 a day (I know that sounds like alot but bear with me). If I thought I had to spend more than that on a particular day, I wouldn't spend all my $125 one day and let it carry over to another day. The next week I lowered it to $100 a day, and then to $75 a day...mind you this was a long time ago but I can now get by on spending $25 or less and that includes grocery shopping and entertainment for my 5 yo this summer. If I want to go Starbucks one morning but I know I'm meeting a friend for dinner that day, I just don't go to Starbucks.

I also cut out going out to eat, even if it meant we ate sandwhiches for a week cuz I didn't feel like cooking. We spent almost $500 a month on going out to dinner and lunch alone, and at the time it was just my husband and I and were were DINKs (double income, no kids) on top of that. Now we are on one income, have 1 child who is involved in alot of activities this summer and we have more money in our checking and savings than when we were DINKs.

gl and hth!

i have a picture of what i want taped to my computer monitor at work. It helps to motivate me at work. Last year it was a Sea World logo that propelled me to win a contest. I had to win to have the money to go to San Antonio. This year, I want a new bedroom set. I have a picture of the bed I want taped to my monitor. But I think it's working against me. I sweat I am on the verge of doing something stupid...like financing it! yikes. I guess, instead, I should have a picture of my credit score! :)

Well, I guess I am not a huge impulse buyer. I think it's best to devise a reasonable budget that includes savings and then pay it like it's a bill.
First you look at where the money is going and how you can DECREASE the outgoing flow of money considering the expenses you currently have.
Then you don't have to look at every purchase from a million different angles. And you can have your coffee guilt free--because it's already IN the budget! Good luck saving for your home!

I'm not in finance so I'm not selling you anything here but you may want to investigate an ING money market. You can open it with them, there is no minimum balance, you can tie it to your bank account (but the money still stays separate), and I think the return is 1%. If you need to liquidate it quickly, you can.

When your family gets paid, PAY YOURSELF first. Set up a direct deposit to have money put into the money market fund ($25, $50, 5%, 10%, whatever amount you'd like). That way, the money gets out of your checking account and it might "look" like it isn't even available for your use.

I know, it isn't really fun but it is a good motivation for me not to touch the money especially if I look at my bank balance and see that the money isn't even there - it's hiding in a safe and special place!

I haven't figured that out yet.

Personally I hate having to put myself on restrictions. When I try to I usually have a meltdown or an explosion in the exact opposite direction and spend like a crazy person. What motivates and works for me is earning more or extra money. I dedicate that money toward the item of choice and then I'm not feeling deprived in any way.

It is a win win for me and everyone.

Hubby and I just came up with some new ways of earning a few extra dollars with the talents we already have. We are saving for a house and need some pieces of furniture. A sofa would be delightful. Already have one in mind which is listed for $1,300.00.