I came across this interesting article posted on MSN’s Personal Finance section titled 5 reasons to try a 2-week spending freeze. As the title would suggest, it encourages readers to take two weeks (or another amount of time of your choosing) and avoid actively spending money. That means you can still spend money on basic necessities like food and gas to get to work and other important appointments. The intention behind this exercise is to determine how much money you are spending on non-essentials and realizing those savings to either pay off your existing debt (if you have any) or build an emergency fund for that inevitable rainy day.
I have to admit that this concept really appeals to me especially since I tend to spend a lot of money on eating out and other wasteful beauty rituals (eyelash extensions, manicures, and pedicures). While I’m not spending myself into the red, I’m definitely going to try a spending freeze to determine exactly how much money I’m wasting a month and decide to do something more productive with the money.
I’ve placed a link below for those of you interested in putting the kibosh on budget busters like restaurants and that morning coffee. Be sure to leave a comment letting me know how your spending freeze is shaping up and how that’s helped you get out of debt or save for something important!
Here are some interesting tips from the article:
To start your spending freeze, you will need to do the following:
1. Decide where to put the extra cash you’re saving
2. Plan meals for every day of your spending freeze and stock up on ingredients.
3. Assess your other essential items (i.e., toothpaste/toilet paper) and stock up on anything you might need in the next two weeks.
You can check out the article here: http://money.msn.com/how-to-budget/5-reasons-to-try-a-2-week-spending-freeze