Times of Change
It doesn’t feel great to have your choices taken from you. We all miss interacting with each other face to face. Each morning we wake up remembering this is not a dream. We are forced to spend time differently. As a result, our activities are limited and so are our options. Our social lives and therefore a lot of our day to day spending is being stripped down to the basics—for a lot us this means groceries and some online shopping.
Times of change like this bring about a new perspective. This is a great opportunity to conduct an inventory of your discretionary spending habits. Do you buy due to unconscious habit, because you work hard and “you deserve it,” or to look a certain way when others see you? Where was it all going? Latte on the way to work? A new outfit to wear to a future event? Brunch? Where is it going now? Groceries to cook food at home for you or your family? Gift cards to support local businesses? Donations to charities that are taking care of those in desperate need?
It is a form of self-care to sit down and explore how our spending makes us feel as well as what is driving our money choices. Now is a wonderful time to take a look.
Finding your money apple
We have all heard of dietary cleanses where we eliminate certain food groups like dairy, sugar, red meat, caffeine or alcohol. For a period of time, we develop a heightened attentiveness to what we put in our body and we take note of how each choice feels. Perhaps at the beginning we feel sad or sluggish without coffee or sugar. We question if we want to continue. But after we stick to it for a week or two, we notice changes. We have more energy, our skin clears, we cook more meals at home, and we lose some weight. We cleanse toxins.
I propose a money cleanse. That doesn’t necessarily mean spending less—it means spending thoughtfully and with awareness. When we stop eating red meat and sugar, it doesn’t mean we go hungry, it means we eat more beans, fruits and vegetables. Similarly we can cultivate mindful financial habits and make healthier choices. In a money cleanse, shedding a few pounds can mean your savings account grows or you are able to up your 401k contribution a percentage point or two (or start a 401k!). If you are new to a 401k, you can read this wsj guide for some helpful information to get started. Make your money cleanse a challenge. Set goals. Do it with family or friends. Now is the time to find out—what is your money sugar, and what is your money apple?
