January Money Challenges: How to Throw Away Money

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Have you ever dumped money in a river? I should probably try it sometime. Especially considering I already do it every month without even noticing it. $73.98. That’s how much I threw away in January.

By no means am I someone that deprives myself. However at some point, you have to draw the line. I limit myself to eating out once a week as well as 100 dollars a month on entertainment. Anything above that, gets counted towards my Latte Factor (My Money). That seems like more than a reasonable fun budget right?

It was hard! It is so so simple to say yes last minute to an event. Want to go to Happy Hour tonight? Twenty Dollars. Worked late so grabbing something to eat on the way home? Six Dollars Please. Tops are buy one get one half off, sure you don’t wan’t to pick another? Fifteen Dollars. It Adds Up and It Adds Up Fast. 

Every so often you deserve a nice night out with friends, a new video game, maybe a mall spree. But you shouldn’t justify these small splurges simply based on the fact that you worked hard and earned that money. That is exactly why it should be saved. Don’t be so quick to throw away something you worked so hard to achieve. 

If we keep indulging ourselves now, there won’t be enough for later on when there is a bigger goal in mind.

Less Now, More Later.

Sticking true to my Latte Factor promise here is an equal amount of $73.98 added on top of my monthly student loan payment.

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12 comments

  1. nailed it again :)

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    1. Thank you. Hoping I can get better at nailing my spending too : )

      Liked by 1 person

  2. Good point! I only let myself pay for that “fun stuff” (movies, bars, restaurants) with cash – but the catch is I only get cash from my side gig tutoring twice a week. So when I run out of that $40 for the week, I’m out of luck until Monday.

    I’ve found it really helpful to have my fun money come out of a completely different pot, and it helps me not feel guilty for spending it since it never goes into or comes out of the bank.

    Liked by 1 person

    1. I have tried the cash idea before, but it sadly doesn’t work for me. I always see the money and get the urge to spend it! You do it on a weekly basis? I planned mine for a month when I tried. Maybe I’ll have to test it in week increments!

      Liked by 1 person

      1. Yeah, I think it’s different for everyone :) I think it works for me since I don’t get the money from my real job so it’s completely separate – and if I go through it too fast it’s only a week!

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  3. stoicinvestor · · Reply

    Taken individually those little expenses don’t seem like much and that is why they are easily justified, but when you begin to see past the small initial cost and look at the cumulative impact over months and years you notice small amounts add up to significant totals. The questions then becomes, did those “significant totals” remain in your pocket or the pockets of someone else?

    All the best.

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    1. I’m definitely starting to notice how much they add up. I knew before, but never really paid attention to the hit my account was taking. Putting something in the form of a challenge keeps me much more motivated and hopefully I can move those significant totals to my savings!

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  4. That’s a great visual, dumping money in a river. It should make us all think twice before spending that extra money!

    Liked by 1 person

  5. This is great- “don’t be so quick to throw away something you worked so hard to achieve.” Love that! That’s one way I try to stop and think about what I’m spending: how many hours did I work to pay for this?

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    1. I love putting things that way. Makes it a lot harder to justify impulse buys! Or at least makes me think twice.

      Liked by 1 person

  6. I think you’ve uncovered a struggle that many people have. Satisfaction now vs. at some hard-to-see point somewhere down the road. I stay motivated by setting small incremental milestones and then celebrate (within my budget) each time that I reach one. For instance, I might set a spending goal for the pay period and celebrate by going to Chipotle for lunch when I reach it. By hitting smaller, more frequent milestones, I can see the results of my efforts more clearly.

    I also set milestones for my savings. In the end, it does require a lot of discipline, but setting frequent and achievable milestones keeps me on track.

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    1. Thanks, wouldn’t say I’ve uncovered it as the idea has been around for a while. But I do think it’s a great way to help people visualize it. I like the small milestones idea… especially Chipotle!!! I am working on setting milestones for my savings this year. They are steep, but I think achievable. Especially if a burrito is on the line : )

      Liked by 1 person

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