I think people just don't think of the cash they spend on a card when they don't see it. It takes a diligenced person to spend well on a card

FrugalFran wrote:

Egghead wrote: Figures on paper are useful, even essential for good budgeting, but for me what works is having hard cash on hand that I can spend how I like. It's kinda old fashioned to enjoy handing over real money, right?

By putting a small splurge allowance in a jar every week along with my small change I seem to ado okay.

For the first time in years, I've recently taken to using cash more often than cards. I have to agree with what you said because I've noticed I track the spending of cash better than I do with a card. I also save my five dollar bills every time I get one and I've been keeping them separate from my other money. When they all add up to a significant amount, I'm going to do something really fun.

That reminds me of the old days when cards were still not popular. I had the cash on hand, I divided it into several groups so I wouldn't spend too much. Is that why it seems more effective? The loss is visible if we can see it directly, unlike cards which, in a sense, is infinite.

Egghead wrote: Figures on paper are useful, even essential for good budgeting, but for me what works is having hard cash on hand that I can spend how I like. It's kinda old fashioned to enjoy handing over real money, right?

By putting a small splurge allowance in a jar every week along with my small change I seem to ado okay.

For the first time in years, I've recently taken to using cash more often than cards. I have to agree with what you said because I've noticed I track the spending of cash better than I do with a card. I also save my five dollar bills every time I get one and I've been keeping them separate from my other money. When they all add up to a significant amount, I'm going to do something really fun.

Figures on paper are useful, even essential for good budgeting, but for me what works is having hard cash on hand that I can spend how I like. It's kinda old fashioned to enjoy handing over real money, right?

By putting a small splurge allowance in a jar every week along with my small change I seem to ado okay.

Medi wrote: The question is often about how big the reward should be. We look up to people who can spend more and apply the same to ourselves when our budgets are different. I think this is why tracking is important, especially if we feel that we still spend a lot despite all effort to reduce it.

Exactly! You can't compare yourself and your spending to other people. You have to compare it to your own budget. We all have a different income and different expenses. Only we truly know how much money we have available to spend on other items.

I've never really understood the need to keep up with the Jones'. I really couldn't care less what anyone else does because most times what they want and what I want is two different things, so their spending habits don't phase me.

Well said, Medi. I know a lot of people who look at what other individuals do and the things that they seem to buy on a whim. There is no way that I would ever be able to complete with some of them and thinking so otherwise would just be disappointing. I don't want to end up in debt just because I feel I need to reward myself with big, expensive items. I'll stick to the smaller stuff like a new book or a new nail polish color as a reward.

The question is often about how big the reward should be. We look up to people who can spend more and apply the same to ourselves when our budgets are different. I think this is why tracking is important, especially if we feel that we still spend a lot despite all effort to reduce it.

You're absolutely right, Frank. I know some people who "reward" themselves, but they don't track it, so they end up spending way more than they should and doing it far too often. That's just counterproductive. Personally, I allow myself one small shopping trip twice a year and I go to the salon every two months. I'm not very interested in spending money on myself most of the time, so I budget for those things and it's enough for me to feel rewarded.

Its all about diligence and making sure you are tracking this every month. I agree you need to reward yourselves, but it is important to make sure you know how much you are rewarding yourself every month/year.

Medi, that sounds like a good plan that allows you a little splurge now and then without going overboard. It's great to see our investment accounts growing, but we need to reward ourselves, too.

FrugalFran wrote: It's been my experience that some people who shop excessively do so to satisfy an emotional need. If spending the money is causing a problem with your responsibilities and/or your relationship, you may want to talk to a therapist to see if there is an underlying cause for the shopping.

I read something similar a while back. If you really think that may be the cause, I hope you won't be afraid to seek medical help because it's not something to be ashamed of.

I check my financial plan regularly. It helps to keep me focused on my targets and avoid unnecessary shopping. I allow myself to buy something I consider luxurious once a month, as long as it's still within budget.

Well said!

I think a lot of people who shop too much do so as a form of self medicating. Some people use drugs, some drink, some eat, and others shop. If you are compulsively spending money, you should really consider keeping a journal to track how you feel when you want to go shopping. Maybe even speak with a therapist. Either way, you need to find the true reason behind the shopping ("What are you trying to satisfy?") and find a healthy coping behavior to replace it with.

What type of stuff do you find yourself shopping for? Are you shopping to fill time? Chances are there is an underlying emotional issue that you need to investigate and deal with, like depression, insecurity or even boredom.