The other day, it occurred to me that within seven months, I’ll be out of consumer debt once and for all. Instead of being happy/ecstatic/relieved beyond all belief, I started to worry. What would I do? Would I go out more? Would my frugality die when this goal is reached?
Average Joe has said that getting out of debt isn’t a goal, or at least not a very good one. Sure, it’s motivating, and it is very easy to put off spending until after a goal has been reached.
So, then, what’s a girl to do?
Can I start paying retail again?
Step One: Replace That Goal, ASAP!
If you’re anything like me, there’s probably a reason for your frugality. A light at the end of the tunnel. So, day after day, you take a bus instead of a cab, you brown-bag your lunch, and you whittle away at the debt monster.
You’re trudging thorough that dark tunnel, and you think, just a few more steps, then I can see again. You head toward the light.
And that’s great.
But the tunnel is long, and though you can see the bright spot at the end, it’s hazy, and undefined. Your eyes grow accustomed to the dark, and you get used to trudging.
I can see the light, and the only way to keep myself on track is to lengthen the tunnel. After all, what’s another few months? I’ve lived frugally this long, and it doesn’t have to be temporary. I can keep buying second-hand clothes and limit my time in restaurants, it’s the new way of life!
Every time I hit a goal, I’ll keep moving the light, until my habits are second nature.
Step Two: Divert Money
In order to keep from looking at Mint and thinking, ”Oh, I have money left to spend this month,” it’s a good idea to start automating savings. Max out retirement savings – if you have a 401(k), max out your contributions. If not, then max out your IRA, or your Roth IRA, whichever you choose. Open a new account, perhaps at an online bank, and hide it from your Mint. That way, you won’t see it as money you can spend, and you’ll hit your goals faster.
Eventually, when I start making more money, I’ll be the boss. But for now, I think, I’m resigned to the fact that I still don’t have a great relationship with money. And until I do, I’m content to steal from my current self in order to pay my future self. It’s like giving future Kathleen a present. One I know she’ll like.
Do you need these tricks? When you hit a major saving goal, what did you do to keep yourself from binge spending? Does anyone else see parallels between food/alcohol/other strange dependent relationships and what I’ve laid out here?
About Kathleen
I second automating your accounts, I automate my savings with ING and the nice thing about having an online bank is that it takes extra effort, and more importantly extra time, if you want to access any of the funds for an impulse purchase.
Oh wow, I really don’t like your imagery of the never-ending dark tunnel. I’m not sure what to replace it with, but definitely the frugal ways should be out in the light and anything excessive should be pushing you down into the dark. Flip the positive and negative.
I guess I think that being frugal is a lifestyle and being cheap is a temporary fix. Frugality is living your values. Even when our income increases (the end of our “tunnel”) I think I’ll just spend more on things I don’t do enough of now, like traveling and buying clothes, but keep most of my everyday frugal habits like packing my lunch and carpooling.
We actually include spending goals or large purchase goals along with our debt payoff goals. For instance, our goal earlier this year was to eliminate our smallest student loan and once that was finished then we’d buy a camera. We had done a poor job of setting goals as of late, but this past weekend we had a budget/goal meeting and it’s really focused us again. I love setting goals!
I personally don’t have any debt but I am saviour mg to help pay off my girlfriend’s student loans when we get married. Before I had that goal I just automated savings and investing and have been letting it build up for my other goals like retirement.
Setting a new goal after you pay off your debt should keep you on track. Once you have the proper mindset, frugality shouldn’t feel like deprivation or stealing from yourself. It should just feel like using your money wisely.
That is a great plan Kathleen. I have also experienced the same issues when I am about to pay off some random debt of mine. I start to think about all the things I could buy after I paid the bill. I don’t usually give in to temptations, what I do is I set a goal on making new investments or acquiring assets before I spend the free money up.
I agree with Jonathan about ING. It is a little more difficult to get into the money and we tend to forget that payments into an ING savings account are being removed monthly from another source.
Paying off debt is so rewarding. Savings in a seldom thought of ING account can make money available when really needed or wanted.