Happy New Year
Almost!
Almost!
No, not that kiss at midnight or writing a list of resolutions.
This is no buy month.
This project is about shifting focus.
It stops that instant gratification syndrome which is easy to start and continue.
Sometimes money is spent out of convenience or boredom.
You want it, you surf online or go to Target and BAM you have a new "thing".
You are happy for awhile but that satisfaction is often fleeting.
Especially during the holiday season it is an easy habit to become attached to. You know how you buy a sweater, then a scarf to complete it, but then really want the earrings too, maybe shoes? Wait, I'm not the only one who does that am I?
A study by Yale and Stanford researchers dub this the "shopping momentum effect". It explains how buying one thing seems to unleash your inner spendthrift. It is that feeling when I am placing items in the basket and say I should think twice about this purchase but justify it somehow anyway.
We can become unconscious spenders. Oh, look at this new app, only $4.99. Or a song on iTunes, only $1.29, the nail polish or post it notes at Target for $3.99 (maybe both) and on it goes. By stopping the momentum of mindless spending it becomes clear how we manage money or not. It is not that easy.
There are many personal finance books that can help us with tricks and techniques for budgeting and financial well being. Be sure to check the library for FREE books.
LEARN!
Our family goes cold turkey, no spending on January 1st. We can only buy groceries, gas and pay regular bills. No eating out, no trips to Target, no "wants" purchased, only needs. We can use the credit card for food and gas only. And yes we have emergency exceptions. One year we needed a dress and all the other stuff for Winter Formal. Because of no buy month, we brainstormed how we could accomplish this for the least amount of money. Instead of going to the mall we went to Buy Rite Thrift Shop and found a long royal blue satin dress for $1.99. We had it cut off and hemmed for $20, and shoes from Payless Shoes for $16.99 (they take them off to dance anyway). So for less than $40.00 it was a Winter Wonderland and the lesson was PRICELESS.
From the science of happiness, the attachments to money and even education are less important than relationships.
-Mark Anielski
So how does this affect our family?
In our house not everyone is thrilled with no buy month but we all see the importance of it. It has become an important New Year tradition. We are on the honor system, even for those that earn their own money and hopefully we all "buy" into it.
What are the benefits?
We are not searching online, finding deals, going to the store, trying it on, thinking about it and finally buying it then debating if you made the right decision.
Shopping is a lot of work.
It simplifies our days because there are no decisions about spending money.
We have discussions about wants vs. needs.
We talk about values.
We talk about being debt free and living below our means.
I like to think I am teaching my daughters about personal finance and decision making skills.
We change our brains and stop the momentum of spending.
And lastly, we save money.
Lots of reasons to keep our tradition going every year.
We do make a last minute trip to the store on December 31, to stock up on shampoo, deodorant and other "needs". In January, I will check my MINT financial software every day to bring back that money awareness. Where is our money going? I won't look at the Target ads every Sunday and think oh I need that. I will delete emails promoting upcoming sales or maybe even unsubscribe so I am not even tempted. I will catch myself when I want to order a book from Amazon or an app from iTunes.
Maybe you can try the no buy project....for a day, a week or even go big and do the whole month. Your bank account will be glad you tried it. Maybe it will become a New Year tradition for your family.
I love this idea!
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