New year, new budget (part I)

The last two years I've done a shopping hiatus after January, inspired by Joslyn. The first year was revelatory. The second year was slightly less so, which I took as a good sign because I really do think I improved quite a bit. (If you missed it, you can see all my 2009 shopping hiatus posts here and the 2010 ones here)

The goal is always to think about my spending and to learn to spend more usefully and thoughtfully. What I've learned is that I prefer to spend money on experiences (yoga classes with D, happy hours with my girls, good meals out, premium cable*) rather than stuff. Unless it is really awesome stuff that I will cherish forever (notably, my CathrineHolm bowls that I have not had a second of regret over, despite the high price tag) or use like crazy.

{catherineholm lotus bowls}

Once I figured that out, it was a little easier to prioritize. I spend less on clothes than I used to (although I could still improve - my goal is to stop buying anything cheap, ever). And I feel less guilty about spending money on the experiences I love. I'm naturally a saver, so I can't focus too strictly on cutting back or I start to stress out big time and not want to spend any money at all. If you read quick financial tips, they tend to emphasize cutting your spending on frivolous items. Cut back on your eating out, paint your own nails, make your coffee at home, watch DVDs instead of going out to movies.

To some extent, I agree. You can save a lot of money by making your own coffee in the morning and if you're stopping for coffee just because you can't get your act together to make it, you might want to look into that. But, if you stop for coffee every morning because you love the ritual and you truly enjoy the luxury of having someone else make it for you, then prioritize it and make room in your budget. You'll just have to give up something else that you like less (cheap tee shirts that fall apart after you wash them, maybe?).

I don't buy coffee every morning, but I do buy myself flowers almost every week. Because I like it. So I make room for it. I also like going out to eat regularly, and I'm happy to pay for it. I like being with friends, and I don't mind buying ingredients for a really nice meal or paying for my drinks if we decide to go out. It would be cheaper to stay home and just eat beans all the time, of course. But these things improve my life, tangibly. I'm careful not to take them for granted, to remember that I'm lucky. I don't deserve these things, in the sense that I'm somehow entitled to them as a right (indulgences are not rights even if it seems like everyone else can afford them - I think we tend to forget that sometimes). But I deserve them in the sense that I work hard for them and I budget for them and I appreciate them.

I save money on things I don't care about as much. I always pack a lunch (or eat frozen meals) at work, because running out to buy lunch and eat it in a rush by myself doesn't make my life any better. I take the bus to work and D and I share a car (and all the expenses that go along with owning a car), which is a pain sometimes, but not that often.  I avoid wandering around in stores because I know I'll be tempted to make impulse purchases and I don't need extra stuff. I check books out from the library and only buy the ones I really love. I have a $10 cell phone and a prepaid plan that costs me less than $10 per month, because I don't like talking on a cell.

Here is the bottom line - your expendable money should be giving you joy, making your life richer. I can't have everything I want, but I can pick and choose the things I want the most and then make them happen.

Tomorrow (if you aren't all completely sick of personal finance already) - my new strategy for this year.


* I used to try to convince myself that we should cut our cable, but I've come to peace with it. We love cable, we look forward to all the new shows and we watch them together, so I'm classifying it as together time. Also, crafting without cable really sucks.