October is a long month; we have five weeks to account for this month. That is why this is the perfect time to prepare for a spending freeze.
You’re probably wondering, What in the world is a spending freeze? A spending freeze is basically a period of time during which you freeze your spending. In my Facebook group, Pretty Money Crew, we are going to do a two week spending freeze during the first two weeks of November. I am going to do the spending freeze for the entire month, but for those of you who are new to this, I would suggest that you start out with a short amount of time.
Now, the majority of people obviously can’t go without spending any money for two weeks. You’ll still have to use things that will eventually cost you money such as your electricity, water and vehicle. And you’ll still have to stock up on things – like food and personal hygiene items – that obviously cost money.
But for a period of two weeks (or whatever other interval you choose), you won’t actively spend any money. Even though you’re still racking up a few bills and spending on essentials, a spending freeze can be an amazing way to re-evaluate financial priorities, appreciate what you have, and boost your savings account.
In this Glam How Financialista series, I will give you five tips (one per week), to help prepare you on how to do a spending freeze and why you would want to do one.
- Jumpstart your savings faster: Unless you have a set budget, you probably don’t know how much extra money you spend on unnecessary things each week. With a spending freeze, you get to see exactly where the holes are in your finances. This is one way to plug those holes and start saving. I have helped friends of mine save hundreds of dollars and they were able to put that money into a savings account or pay down debt.
- Before we start, you will want to decide where the money you save will go. Have a purpose for it, or you will just end up blowing through that money at the end of the freeze.
For this week’s assignment, I want you to get a poster board and write your goal on it. Some things you might write are how much you want to save and what you will put that savings toward. When you get that done, set it aside and I will tell you what to do with it next. Until then have a great one!