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Why I don't pinch pennies

May 9th, 2007 at 10:26 pm

To me, penny pinching is not just about saving, it's a mindset that money is all important.I do not micromanage my budget because it makes me unhappy. Constantly thinking about saving a dollar here or there would make me depressed. To me, if I buy something and it makes me happy, it's much more important than the exact price. Don't get me wrong, price does matter, but only in a larger sense. I have a certain price threshold above which I'm reluctant to go, if an item is priced equal or less than I am willing to pay for it, I will have no regrets paying that price for it.

I also try not to buy stuff "because it's on sale" or "because I have a coupon". Before I walk into a store I know what I want to buy; I do not walk into a store with a "get $10 off $20" coupon and browse the store for something I like of $20 or more. On the other hand, I hate shopping, so I rarely walk into stores in the first place....

Here's the general plan I follow for saving:
1) Set a goal (weekly, monthly or yearly) for saving as a whole (.ie. save $500 this month).
2) I plan a budget to fit that goal
3) During the saving term I keep my eyes open for significant overspending
4) I analyze my spending in relation with my budget and savings goal at the end of the saving term.
5) In response I either tweak the next term's budget OR savings goal. I try to take into account both financial viability and my personal happiness.
6) I consult my fiance about the new goal and, if necessary, changes we need to make in our lifestyle to accomodate the new budget.
7) I also project a long term savings trend to keep us on track towards financial independence at the end of our careers.

Posted in Uncategorized | 3 Comments »

3 Responses to “Why I don't pinch pennies”

  1. JanH Says:
    May 9th, 2007 at 11:12 pm 1178752337
    1178752337

    That's the beauty of this site. There are as many ways to budget, save, reach our goals as there are people. We can learn something from everyone or see another viewpoint. And then we can adapt things that work for us.
    For instance, I like to keep track of what I spend, but I also really like your idea of setting a savings goal for the month. That's something I can adapt into my goals!

  2. Aleta Says:
    May 10th, 2007 at 01:30 am 1178760655
    1178760655

    It's so true in a way. Sometimes if you become so hung up on saving every penny, you lose the whole point. I liked the book ALL YOUR WORTH and the reason is that you have priorities. You save the most by attacking the larger items that take your money i.e. auto insurance, etc. You set a goal of wants, needs, savings, and debt. What you spend on wants is up to you. But she does point out that sometimes we are not spending enough on wants. I also look for buys on coupons that I use an save on gas when I'm in that general area, but you also have to have a life as well like you said. That's not to say that you should always buy name brands. We all know that generic are almost always as good. But the main thing is to have a budget so that you can allocate to different categories.

  3. reflectionite Says:
    November 7th, 2007 at 11:22 pm 1194477761
    1194477761

    i like you're idea of budgetting/spending. i track my finances only because i'm one of those weird "lists" people and it makes me feel calm, but really, if i suddenly decide to see a movie or need new shoes, or decide to buy a laptop, if i have enough money, i'll do it, regardless of whether i have already been bowling that week, or already bought a pair of work pants last month, or if i can "probably" hold out on the laptop for another month. while money is important, it's not the be all and end all.

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