This week I’ve been thinking about how The Spending Diet should work. I thought I had it figured out and then I didn’t and then I did and well, I wanted to have a plan that would work for me for life. Not something that I wouldn’t be able to keep up. So. I think I’ve got it sorted out now and I’m ready to spill the details.
The other day I was talking with a pal I hadn’t seen in awhile and he’s all “I’m doing the budget thing too” and I’m all “Oh, I’m not budgeting” then he’s all “Yeah, you are.” Me, “No, not really I wasn’t spending any money at all.” Him “That’s budgeting.” Me “Uh, no it’s not”. Him “Uh”. Me “Uh”. Him “Uh”. And so on and so on for like 5 minutes maybe more, and then we said our “goodbyes” and that was that.
Since budgeting is something that I tried pre-Spending Fast and since I didn’t have success with it I never considered that what I was doing was a budget technique. I don’t know, maybe it is? Maybe it’s just the word that I don’t like. That is a possibility. It’s kind of like the word “networking”. That word is scary but that’s all that’s scary about networking. Anyway, that’s totally off the topic. So, for me budgets weren’t a fit. I don’t like the category thing and defining a certain amount for each category and then going over or under categories and what if a certain thing goes into 2 categories?! Then WHAt!? Then WHHAHHHHATTTT!!!?? PANIC!!
Budgets work for millions of people and that’s cool. There’s a ton of different ways to do the same thing.
Anyway, here is my Spending Diet plan that I don’t think of as a budget:
How to do a Spending Diet
1. Make list of my NEEDS. These are things like: shelter, phone, food, utilities, mortgage/rent. See my original Spending Fast Needs list here. I’m going to re-do this list. Re-evaluation is a good thing.
2. Out of my NEEDS list figure out where costs can be reduced.
3. Stop spending money. (simple but not easy!)
4. When a NEED from the NEEDS list pops up I’ll spend money on those. Those are NEEDS. Those are okay.
5. Since this is the Spending Diet and not the Spending Fast I am allowing myself a $200 $100 limit on “non-needs” for the month. Things that go into this section are things like: clothes, make-up, entertainment, dinner out, other random “non-needs” stuff. I’ll follow this criteria for purchases so I don’t go buck wild buying corn dogs and bubble gum.
6. I’ll keep a running monthly tally of the money I’m spending on “non-needs” and once the $200 $100 is hit then that’s it. I’ll stop spending money and go into the Spending Fast mode for the remainder of the month.
There you have it! My Spending Diet Guidelines!
With this plan I hope to have a life long livable plan that works for me. I’m hoping with this plan I will be able to live in the world of “Enough” and not feel the deprivation I felt with the Spending Fast and also I won’t feel the tedious-ness that a budgeted life makes me think of.
I decided to change my “non-needs” limit to $100 bucks. After a year on the Spending Fast $200 a month seemed too easy!
21 Comments
The link for the NEEDS list no longer works. Has it been moved elsewhere?
Hi Anna, Sorry about that link not working! I’ll update that. Here’s the link: http://andthenwesaved.com/about-the-spending-fast/
The link for the criteria you use to evaluate purchases from the ‘non-needs’ list isn’t working either.
Hi Kathy, Thanks for letting me know when you run across these broken links. I’m on a mission to get them all fixed! And sorry about that! :/
Im so in!
Im so happy I found your blog!! I hope I can make this work!
The fast was too scary for me. You’re the bravest person in the world I’m pretty sure. I’m going to start the diet in January, wish me luck! You’re a great inspiration and my debt is almost exactly what yours was when you started! Entirely student loans from college…oi. The plus side: low payments and low interest. I can do it!
I am doing a spending diet starting 1/1. Not sure if it will be $20 or $25 a week for extras. I’m looking forward to the adventure! Thanks for the inspiration!
Just put myself on a diet and found a great iPhone app I thought I’d share! It’s called “My Weekly Budget”, and you can set the amount to whatever you’d like. I chose $25 per week like Hope up there. It shows you when you’re in the green and how much you have left to spend, what you’ve spent on, and it carries over your balance to the next week (extra play money!) if you don’t spend it all in a particular week. Poor explanation…sorry…but check out the app!
I’m going to try the spending diet starting in the new year! Thanks for the great site — I can’t wait to read through the archives for more great ideas. :)
I’m super excited for you to start your Spending Diet! It’ll change your life! The archives are a great place to find a ton of info too so have fun going through those!
I am also going to be on a spending fast / diet. I am slowly trying to figure out I will get it done and getting into that mode. By January, I should be completely in it! I am also writing a no-spending pledge for myself. I hope I will be able to keep it up :)
Thank you so much for this site and tips – it’s motivated me to blog to also keep accountable so I can get rid of my debt. Love your witty and practical writing – thank you!!
This is a fantastic idea, most people don’t even have a budget so its a good way to start!
We looked over Christmas at trimming down expenses and just changing our Phone plans we saved $480 a year just by spending an hour at the phone shop!
Wow, $480! That’s amazing! It’s so easy to just be on auto-pilot with phone plans! Good for you!!
We truthfully have very little debt aside from our home and car and rv BUT I feel very strongly that our spending is overkill. And we are trying to save money for a down payment on a new place later this year. I tend to like to use the kids as my excuse to spend cuz they ‘need’ certain things but the truth is I just have a compulsion to shop for stuff. Fourtunately I also have a strong tendency to purge so our home doesnt look cluttered and you cant see that I have this issue. But I purchased the weekly budget app and since we are only 3 days into the month it was great timing. I’m already $150 over budget for the week! Im giving us $350 a week for groceries, gas, and spending for our family of 6. That is truthfully just what is leftover at this point after bills, and split into weekly chunks. We are paid monthly so even if we can just keep true, the last week of the month will be better. Great advice tho! Just the push I needed.
I don’t know how you do it. I don’t spend money on myself yet I still cant stop spending money. There is always some event, or birthday or dinner that I need to pay up for. And people just find it rude if you don’t go, or if you don’t by them a gift on their birthday. I don’t really have a social life as it is but if I skip out on any more things I’l just be sitting at home staring at the ceiling all the time! These might sound like excuses but I just can’t wrap my head around how I could spend less money than I already do!
Go through the last 3 months of your past bank statements and put each purchase into a budget-like category. Determine the average for each category and then get honest and tough with yourself about what your priorities in life are and cut out your non-priorities. Homemade gifts or baked goods work work great for birthdays too:)
$100 a month for miscellaneous + clothes+ shoes + movies + whatever else catches my fancy is my regular budget. I guess my broke butt doesn’t have to “diet” lol but I like the idea a lot! I try to spend less than my $100 or spend some of it on mystery shopping so I will get reimbursed plus make a little extra and then save it. Then I feel like I am spending but I am actually saving :)
I’d love to hear suggestions on how to work the diet when there’s one bi-weekly source of income and a monthly SSI payment but the two spouses don’t agree on spending habits?
That is a tough situation. Could you go to couple’s counseling and try to find some common ground? That would be a good place to start. Also, seeking out additional ways to generate income would be a good idea. Here’s a link to a post that might help get some ideas going: http://andthenwesaved.com/15-side-gigs-to-make-more-money-today/
23 Trackbacks
[...] corner, and I’ve made a big decision. Starting on January 1, I’m going to be doing a Spending Diet, as outlined on the blog And Then We Saved. When I read that Anna Newell Jones paid off over [...]
[...] a few days I’m starting a Spending Diet as explained on the blog AndThenWeSaved.com. I’m both excited with anticipation and nervous [...]
[...] 5) How to do a Spending Diet [...]
[...] a diet without rules? Or goals? OK, I’m sure I could think of something else to call it rather than [...]
[...] budgets for the future, and told him about my new plan. I’m thinking of putting him in the Spending Diet first, while I go on the Spending [...]
[...] Anna Newell Jones’ , Spending Fast , which helped her pay off $23,000 in debt, and the Spending Diet, which is a modified version of the fast, that helps her spend sensibly after she completed the [...]
[...] made it through the first week of my Spending Diet successfully. The week has been pretty uneventful — I’ve been working my way through [...]
[...] reading this really great blog about going on a spending diet (http://andthenwesaved.com/my-spending-diet-guidelines), I have decided to make some small steps and therefore “beauty sacrifices” to spend [...]
[...] really like her post on The Spending Diet and hope to use some of her ideas in my own quest for less debt (hey that almost [...]
[...] (so that I can’t talk myself into anything that would be counterproductive). So, based on The Spending Diet from Anna at And Then We Saved, here is my savings plan for [...]
[...] Now, don’t forget, you need to reward yourself as part of this process, too! I’m on a Spending Diet this year, so my reward for meeting my goals will be going for a deluxe spa pedi. Seriously, after [...]
[...] Jones has the most inspiring financial blog ever. She is the founder of the Spending Fast (and Diet) and breaks her financial journey down so that it’s easy to understand and easy to follow her [...]
[...] nights to solid tips and hints, this blog is really, really great. Plus she explains how to go on a Spending Diet or a Spending Fast. The Spending Fast basically scares the heck outta me, so I’m working on [...]
[...] wish I could take credit for drawing parallels between diets and budgets, but Anna over at And Then We Saved beat me to it. I’ll be incorporating her tips into a plan that I can live with for the next [...]
[...] sometimes exciting, sometimes annoying as hell process. I sort of said that I’m doing the Spending Diet, but that isn’t completely accurate. Throughout the process of coming up with a plan I sat [...]
[...] Where did I get this idea from? Check it here: Spending Diet [...]
[...] How to do a Spending Diet [...]
[...] One post in particular caught my attention which is the Spending Diet. She has a post about Spending Fast too but I figure out abstaining myself to that extent would leave me bitter (LOL). So I believe a Spending Diet is a much better and sane option for me (her post is here). [...]
[…] (honesty hurts, doesn’t it?) and cut off my frivolous spending (more details to come on the Spending Diet Anna created that I’ll be […]
[…] was a little nervous pitching the idea of my Spending Diet to my boyfriend. What better way to kick off a new relationship than saying ‘hey, is it cool […]
[…] is the first day on my Spending Diet! Woo […]
[…] and give you some much needed help and hope to conquer your financial issues. She offers a “Spending Diet” and a “Spending Fast ®” (both totally free programs/advice) depending on your […]
[…] so excited about what this month has in store. I’m continuing my spending diet, prepping to buy Christmas gifts, going home to North Carolina for Thanksgiving and Going on a […]