Chicago Home and Lifestyles – Four saving strategies that work

We all would be better off if we became more mindful of our spending. With purchases reduced to a quick click on a website it is way too easy to buy things these days! You may have heard of “no buy months”, where you eliminate all non-essential purchases for a set period. But concepts like that, though straightforward, often fail as they don’t set a framework for long term habits. A budget can also be difficult because it can feel like being on a diet. So, here are some strategies that can set you on a path to financial wellness:

The envelope method. This is an old but effective way to budget. You divide physical cash into separate envelopes for your expenses. Common categories include groceries, gas, rent, entertainment, etc. Once the envelope is empty you are done for the month. It makes you really consider every purchase. Paying with real cash instead of just using your phone also helps you pause before making purchases. 

Find the problem areas. Try to pick out your most problematic category of spending. First, identify your highest unnecessary spending category. Set a reasonable goal to reduce by half. Example: cutting eating-out by half. Track your progress. This works as you are not trying to eliminate the spending entirely but just reducing.

Slow shopping. This emphasizes thoughtful consumption rather than being impulsive. Have a mandatory waiting period before making non-essential purchases. Do your research, check out alternatives and compare prices. Maybe a secondhand option may work. Ask yourself, what is the value of this purchase, is it truly necessary? 

Create your own values-based budget. What really matters to you and your family? Is your health top priority? Do you value family experiences? Perhaps the education of you and your children is at the top of your list. Allocate more resources to these categories that are of high value to you. Then you can naturally reduce spending in other areas that don’t align with your priorities. 

The most effective strategy is one you can maintain. Try different approaches until you find one that will create sustainable habits without making you feel deprived. It’s not about spending money, it’s about spending on what really matters to you!

Kathleen Weaver-Zech and Dean’s Team Chicago