Watching Every Dime

For many of us, once we come to the realization that we are in debt for more than what feels comfortable, we begin to apply the brakes a bit when it comes to spending. We may notice that we haven’t been paying much attention to the amount of dollars going out as it relates to dollars coming in. We may become painfully aware of how our overspending has gotten us into a mess, whether that overspending occurred over a longer period of time or if it was the result of several larger expenses.

Typically, the first move when we are trying to fight this fire is to watch every dime that we’re spending. We become more aware of prices at the grocery store. We may even decide that there are certain luxuries that we no longer need to have in order to save money.

I believe that this is a great first step to take after realizing that debt is a real problem. For some, it may work like a switch. One day you decide to watch every dime, and just like that, your monthly expenses aren’t as extreme as they were previously. For others, watching every dime might be overwhelming and shifting back to old habits of overspending ends up taking the place of frugality.

Wherever you may fall in this spectrum, the one thing to keep in mind is that having to watch every dime spent doesn’t have to be an ongoing thing. Sure, the longer you can do it, the better off you might be if you are able to be cost-conscious over a longer timeline. However, feeling that you need to take a break every so often and going on a small spending spree can actually be a good thing.

This might be counter to what you’ve heard from other so-called personal finance gurus, but hear me out on this.

We’re at the time of the year when folks are more carefully aware of the food on their plates and consuming either less quantities or better foods than they may have been consuming previously. Combining these diet changes with a weekly exercise regimen usually equates to achieving the desired results on physical improvements.

How is that much different than reducing overall spending and combining this with a more aggressive debt payoff strategy (or savings strategy)?

The answer to this question is that it’s not much different at all. You’re reducing the amount consumed while focusing on a process to improve the overall situation at the same time. Watching every dime spent is akin to watching the amount of calories you might be taking in with every meal.

Some folks have the will power to stick to a new diet continuously without fail, while others may need to take a break now and then to enjoy their favorite dessert or dine at their favorite restaurant. It’s not much different to allow yourself to have a day pass to spend a little here and there as a reward for your own perseverance.

Watching every dime doesn’t have to feel like a hardship. Instead, it can feel like a way out of a bad situation while allowing yourself the flexibility to take a day off here and there for your own sanity (within reason, of course).

Don’t make this harder than it needs to be. The path to achieving your goals can include controlled distractions that will give you a little enjoyment while you work hard towards the day when you have no debt roadblocks and no longer need to watch every dime, unless you want to do so.