Categorized | Saving Money

Understanding a Spending Freeze


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There is a lot of different financial guru’s out there giving different advice, usually contradicting one another’s advice. Lately there is a lot of talk about spending freezes but the advice towards taking one is clouded. So here is my take on understanding a spending freeze and how best it can serve your spending habits and ability to save money.

What is a spending freeze?

spending freezeThe basic understanding of a spending freeze is a period of time in which spending stops. Many self help books and pro financial freeze advocates believe that spending freezes should occur between a week and two weeks at a time. A spending freeze is not a bad idea, but it is not applicable to many people. What a spending freeze does not take into account it the state of the economy, the state of the job market, or how personal finances are doing currently. A spending freeze can be a good idea because of the good intentions behind it but tends not to offer solid application in our modern day. A spending freeze often comes across as a knee jerk reaction to try and make every penny go as far as possible. But there are ways to use the best parts of a spending free to help you save money.

Starting a calculated spending freeze

The key to using a spending freeze for the best factors involved is simple. First you have to look at the money you are spending on a weekly and come up with a goal on how much you are looking to save. The starting cause for spending freezes often come out of the desire to stop spending ones money frivolously. Smart spending is often the best remedy to foolish spending. a spending freeze can happen as long as your bills and monthly expenses are still being met.

Step One: Identify the goal

Your financial goals when considering a spending freeze should be in the mindset of f saving as much money as possible. Often our weekly finances go unchecked even when our monthly expenses are calculated and accounted for. Identifying what your financial goals are will allow you to access them faster and more effectively. The best ways to enact a plan are to come up with the guidelines first and solidify how you think is the best way to achieve them.

Step Two: Don’t Let Your Monthly Expenses Get Awayspending freeze 3

Just because you are considering a week or two week spending freeze doesn’t mean that your monthly obligations should go unchecked. The spending freeze happens outside of your monthly bills and month to month operational expenses. It is important to remain steadfast in paying those student loan invoices or that car payment. Just because a bills due date may fall into the time frame in which you are planning to cease spending doesn’t mean that your monthly expenses should go unchecked.

Step Three: Plan Ahead and Curb Costs

When I was younger and worked in a grocery store there was an old lady that would come in every day and buy a pint of milk, some bread and deli meats. When she was approached and asked why she didn’t buy enough for the week her answer was that if she died that night all of her food would go to waste if she bought more than needed. When it comes to planning for a spending freeze this is not the mentality one should have. If you are looking to cut your spending down then you should be looking to plan ahead and make your meals as well as your weekly allowances go further. The idea behind how a spending freeze works is to train yourself not to spend your money on things that aren’t needed. Instead of going out to drinks with your friends after work, curb your cost and buy a bottle of your favorite drink so that you can hang out at home or someone else’s place. Curbing one’s cost will only help you to be able to better plan for the road ahead and the best opportunities to spend and save alike.

Step Four: Stay Committed

The very characteristic that keeps many people from succeeding in their financial goals is that they lack the commitment to their goals and to themselves. If you choose to enact a sending freeze when it comes to your spending habits, give it 110 percent. Do not back down or buy those cute shoes simply because they are 10 percent off this week. Remember your financial goals and remain true to them. This is the only way that you are going to be able to realize them.

The key to a successful spending freeze starts with understanding how one works. The best way to understand how one works starts with understanding why one would need that type of action. Lay out a goal and understand what you are looking to achieve is the first step towards achieving your monetary savings not only on a monthly basis but on a weekly one as well!

 

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