Do Less (11 page)

If you're in debt, one of the most disheartening and challenging results from this exercise will be seeing how much you are paying each month in interest or mortgage points. You'll find more debt-reduction strategies in the rest of this book, but for now, look at ways to reduce your discretionary bills so you can put that extra money into your loans or credit card balances. Even a few small cuts to your “want” bills can free up money that will help accelerate debt repayment. For bigger wins on the debt-repayment front, look at larger expenses like rent and transportation and see if there is a way to live somewhere smaller and closer to work. Housing and transportation costs are two expenses we often think of as being fixed costs, and we often miss out on hundreds of dollars a month in savings because of that. Consider some short-term options like moving in with friends or selling your car and commuting by bike to makes big gains on paying off debt.

Reverse budgeting is so simple that there's no excuse not to try it. Here's the gist: When income comes in, set aside an amount for savings, perhaps having an automatic transfer of 10 percent of your income into another account, and the rest is yours to live off of until the next paycheck. That's it. When nondiscretionary bills like rent or your mortgage or medical insurance premium have been paid, the remaining money is yours to spend as you see fit. No categories, no tracking, and no complicated formula.

The beauty of this system is that it is simple and allows for flexibility. If you know you have a large expense coming up later in the month, live simply for a few weeks, inviting friends over for a movie night rather than joining them for a meal out. Delay any other large purchases. As you get closer to your next paycheck arriving, monitor your spending more frequently. Some weeks you may need to rustle up a few dinners from the staples in your pantry and freezer and other weeks you may have your paycheck come in with room to spare in your account. The goal is to learn how to say no when you need to and to keep an eye on your checking account balance. Some months you might have to pass on an event because you need new sneakers, but instead of feeling deprived, you feel at peace. You're living within your means and you now know that you don't need everything to be happy. And that knowledge is worth more than money.

Paying with cash is the other cornerstone of a minimalist and easy budget system. Credit cards are often the gateway to overspending and mismanaging finances. Paying with cash is powerful and it's the easiest way to know what's left in your checking account. When you buy something with cash, you are instantly more aware of not only how much it will impact your bank balance but if the purchase is truly worth it. If you only have $400 left until payday and your cell phone bill still has to be paid, do you really have the cash to go on a road trip for the weekend? Credit cards allow you to conveniently forget the impact that buying something has on your bottom line. Using cash and cash only is an easy introduction to simple budgeting.

In a minimalist life, you use just what you have. Cash is what you have. Credit belongs to someone else: the bank. Using a credit card complicates finances and can lead to spending more than you intend to. Parting with $70 in cash at the gas station can be a good reminder to batch your errands and drive less. It can even be motivation to ride-share, walk more, and consider moving closer to work. But handing over a piece of plastic at the pump doesn't have that same impact. It's too easy to forget that you put a purchase on a credit card and suddenly that healthy balance in your checking account is actually in the negative.

Here is a simple spending plan for someone wanting to use a reverse budget.

• Monthly income after tax: $3,000
  
• Savings: $300
  
• Remaining money for all expenses: $2,700
  

Breakdown of expenses:

• Rent or mortgage: $900
  
• Utilities, cell phone, cable television, etc.: $300
  
• Transportation (car insurance, gas, repair, public transportation): $300
  
• Groceries and dining out: $600
  
• Other (charity, clothing, travel, home repair, etc.): $600
  

Reverse budgeting allows you greater flexibility than a budget that relies on categories or envelopes; it is also the simplest way to manage your money. When it's gone, it's gone, and when you have something left, you can choose where you'd like that money to go. Roll it over into next month's budget or send it to your savings account—it's your choice.

If you're in debt, there is no better time than today, this very second, to start getting out of it. This book is full of ways to live simply and save money—use as many of them as you can. If you are in debt and it's holding you back from doing things you want, such as continuing your education, saving, or being able to work less, you have extra motivation to embrace these techniques. This section offers some practical and some radical ideas for getting out of debt and saving money.

One way to reduce your spending and avoid adding more debt and clutter is to wait thirty days before buying something. If you think you need a serving platter or a new swimsuit, promise yourself you'll buy it in thirty days if you think you still need it. Often, waiting on a purchase and living without it makes you realize either you already had something that did the job or you didn't really need the thing in the first place. We rarely get to hit the pause button in life, to take some time to think over our actions before we make them, and so we sometimes need to create these pauses artificially. That's what the thirty-day wait is: a pause to collect your thoughts instead of buying on impulse or without good intentions.

Waiting thirty days to purchase something is also a great way to practice delayed gratification. Everything in life is so instant now; no one has to wait for information or entertainment. If a shop is out of your size jeans, you can simply order them online with next-day delivery. Waiting is challenging for a lot of us because we aren't used to it. We can buy almost anything with a few clicks and a credit card today. As you turn your focus away from buying and consuming, you'll find it easier to wait for things and see that you need less than you once thought you did.

To put this into action, create a thirty-day buy list. You can use a notebook, a chalkboard, a list on your computer or smartphone, or a virtual pin board on something like Pinterest.com. When you think you need to buy something—anything that's not consumable or an emergency—put it on your list. Set a reminder on a calendar to check your list in thirty days. If, after thirty days, you still want the item and know it will be useful for you and fits in your budget, buy it. If, however, you realize you've been living well without that article of clothing/gadget/throw pillow, strike it from the list.

Stores are organized and arranged to make us buy more than we intend to. The end-of-the-aisle display features a “loss leader” item, something the store is selling at a drastically reduced priced to get you to buy even more. A great deal is hard to resist! You may have come in to pick up just one item, but you end up leaving with a dozen. Stores can be a trap and undo the best intentions for sticking to a budget and just buying what you need.

In the Home section, you carefully went through each room and removed anything you weren't using or no longer needed. Think back to all those items you donated or sold. Did you buy them intentionally or were they purchased on a whim? Were you in a store looking for a gift for someone else when you decided to buy a little something for yourself too? Often the clutter we accumulate comes not from our planned purchases but from the unplanned ones. It's that stop at a craft store when you're killing time before meeting a friend for lunch or going to an electronics store to get a new battery for your laptop and leaving with a few DVDs and a universal overseas charger and adaptor too. Clutter and the unplanned purchase go hand in hand.

One strategy for sticking to a budget and buying just what you need: shop with a list. It's a simple way to keep focused while shopping and turn a blind eye to sale items or attractively displayed merchandise. Make a habit of only entering a store with a list in hand and your sale blinders on. Do not let the panic or fear that you are missing out on a good deal sway you into buying more than you intended. Sales come again, things can be bought secondhand for a better price, and losing out on one deal that could save you $5 is not worth layers and layers of clutter in your home and hundreds or thousands of dollars in wasted money. The good habit of shopping with a list will save you far more than any sale ever will.

To put this technique into action, consider where you write your shopping list. The back of an opened envelope, your day planner, or a note on your smartphone are all good spots for lists that will help you stay organized and focused. Pick the one that is easiest and make a habit of shopping with a list. Don't be concerned if you start off writing your grocery list sitting in your car parked outside the grocery store. It is always worth it to take a few minutes before entering a store to collect your thoughts and plan your shopping.

Even better than writing a list before you enter a store: don't go in the store. There are times when we need to browse to find an item—to see what is available and make a choice—but often, we go into a store for no other purpose than to see what they have without any idea of what we actually need. We're shopping not to find something we know we need, but to actually find the need. The idea of upgrading your cell phone or buying a soap dispenser didn't cross your mind until you saw the item in a store you were browsing. Suddenly that thing you didn't even know existed becomes something you must have.

The solution to all this false need is avoiding stores. This goes for brick-and-mortar stores and online shopping. If you don't have something on a list, preferably a consumable or something you've waited thirty days to buy, don't enter a store. Not going into a store is one of the easiest actions you can take to reduce clutter and save money. It's also a great way to save your time for more worthwhile pursuits such as sleep, making a good meal, or finding a spare hour to spend on yourself.

If shopping is a pastime for you or your friends, staying out of the stores will be a challenge. Start with finding other ways, preferably free, to socialize and bond. Instead of walking the mall, take a walk on a nature trail. Find new hobbies that don't center on buying things. Shopping shouldn't be a hobby! Hobbies should challenge you, like running, or relax you, like knitting. Your life will be richer, your bank account healthier, and your home less cluttered and easier to maintain when you stop shopping as a hobby.

Sometimes it feels like all we ever do is open our wallets. Lunch, coffee, gas, $10 for a colleague's baby shower gift, and even feeding a parking meter all mean you're buying something. Wouldn't it be nice to spend a day without using your wallet at all? That's just what a no-spend day is. One day a week, decide you won't buy anything. Take your lunch to work and have your day planned out so that you could theoretically leave your wallet at home. Plan your shopping for an alternate day and book any social engagements or entertainment for a different night. If you have a daily purchase that you usually make with cash, such as bus fare, purchase a ticket the day prior.

The goal of a no-spend day is to get in the habit of living without spending. Too often, we think we need to spend money to have fun or to socialize. Our days are peppered with things that cost money but truly aren't necessities. The no-spend day gives you a fresh perspective on how to live with less stuff and on less money. When you're not constantly reaching for your wallet, you learn how to:

• Enjoy other aspects of your day … like the natural beauty that surrounds you as you walk home from work or listening to your favorite music as you fold laundry in the evening
  
• Sharpen your budgeting skills
  
• Heighten your senses for the free fun and joy in your life
  

It's a good way to spend less and learn how to enjoy your life more.

Unless you're living in a remote area with no Internet access, the chance to spend every day is almost unlimited. A morning coffee, an online order for running gear, lunch at the local sandwich shop, library fines, a half dozen items at the corner store when you just went in for milk, and a new mixing bowl set after you saw a sale sign in a kitchen shop window could be a normal day's purchases for most people. We open our wallets far too often and at the slightest provocation.

The minimalist life is one of financial simplicity, and part of that simplicity lies in spending with intention. For example: maybe you shop once a week because that is what works for your lifestyle. You make a point of not going to the grocery store in between those planned trips. At the end of the week, you might be having your coffee black and your breakfast is last night's leftovers on a piece of toast, but that isn't a hardship. You are simply using things up, limiting waste, and sticking to a once-a-week shopping routine that saves you time and money. That's just one way to spend with intention. Another way is to leave your wallet at home when you don't plan on buying anything. Having to go home and get your wallet quenches the need to buy something.