Where did all your money go last year? What are you going to do differently? This isn’t about making resolutions like those people you see signing up for gym memberships that will indubitably go unused in about a month and reactivate the week before spring break.
I want to share a few tricks that will empower you to take conscious control of your assets. I’m not trying to reinvent the wheel, but a little behavior modification might be in order; baby steps.
“Yes, I’d like a receipt.”
We live in a swiping society. Most of us don’t use the Benjamins. I get it. Cash is dirty. You don’t know where it’s been and you’re bound to get change that jingles all over the place. Frankly, coins are annoying and basically worthless unless you need to pay the parking meter. Ergo, plastic is king.
On average, consumers carry three cards in their wallet, according to a study by the Federal Reserve Bank of Boston.
Along with each swipe comes the option to receive a printed record of the transaction. Many people may think they are saving trees by politely declining when the cashier asks to print or not to print that little piece of paper.
Here’s the deal: Keeping receipts makes you consciously aware of the money spent. It’s the only tangible record of purchases made. There is no denying a stack of paper in your wallet. Next time the cashier pops the question after swiping your card, say yes for goodness sakes.
Treat your receipt as a gift—don’t wad it up in your pocket or handbag. Glance at the paper to recognize how much you actually spent. Put them in a central location where you can review them at the end of the week. You will find out where your money has gone and discover ways to keep a little bit more in your bank account. Review your account online and reference your receipts if you find an error. Take note of items that are not necessities. In turn, you can funnel the excess cash into saving for expenditures like that spring break trip to Cabo. Don’t touch this savings account. Delayed gratification can be a powerful tool.
If you’re brave, you can try a little technique I used in London to prevent overspending. Take out a specific amount of cash each week and only spend that allotted amount. Seeing cash disappear from your wallet is very effective. Since cash is untraceable, be sure to keep your receipts. Most retailers won’t let you return those impulse purchases without a receipt.
The point of this exercise is to make you aware of where your money has gone at the purchase point. It’s economics 101 – we all have limited resources. Be discerning. Prioritize your spending.
