With summer around the corner and with things opening it causes people be nervous about spending too much money. Luckily, we can provide some great ideas on how to be intentional when spending your money. Ashley Nguyen, the founder of Money Lobby, has great advice and challenges to improve your spending habits.
What exactly is intentional spending?
As people, we all have goals for what we want within our lives. Those things can be very different for each individual person. People could be saving for a house, ordering in food once a week, watching Netflix, or having a self-care night. The way in which you spend your money differs for everyone. Ninety percent of time, there is a gap between what you want and what you spend money on.
What are some ways we can adjust our spending habits when we see such a gap?
When we find those gaps, we learn one of two possible things. On one side, that thing we are buying is actually really important and we need to add it into our goals. On the other side, it is an unintentional habit we have built.
An example could be a walk to the local coffee shop to buy lattes and an almond chocolate croissant. For some people, they learn that the important aspect for them was to get a break during the day in order to get up and move. So perhaps, that money we are spending is not intentional in the grand scheme of things. If your treat from the local shop really drives happiness then it could be something to build into the budget! Another great example could be an opportunity like a sale. We all know we love the Sephora sale, but did we really need all that stuff?
What’s an exercise that can help people determine what is intentional vs. unintentional spending?
It’s called the 2 Week No Spend Challenge. This is a commitment to not spend money on anything that is non-essential. Spending is limited to necessities such as bills, groceries, and transportation, and few exceptions of your choosing. An exception can be something like a baby shower you know you need to buy a gift for. Aside from that, you aren’t spending on anything else. No Sales, No Impulsive Shopping, No random online shopping!
With things eventually opening back up and summer around the corner, it gives us a chance to speed up our savings and build some good spending habits. In a world where we are constantly being bombarded with offers and deals, it’s a good idea to pause and examine our habits. Taking a step back from spending for a short period of time allows you to begin to learn a lot about yourself. You take into account your spending habits and the relationship that you have with money.
Click here to download Ashley’s no frivolous spending challenge template.
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