We all want to shop, but no one wants to save. A little bit of discipline might not mean the end of the road for spenders. It’s just a matter of getting your priorities right.
I often find women seek me out. It happens at parties. It happens at bars.
I’ve got quite a reputation.
So much so that many want to skip the small talk and get down and dirty – about their finances, that is.
Shopping is a potent stimulant and I’ve got the financial equivalent of Viagra – an anti-budgeting plan that I like to call “Barefoot Bondage” that gives you the discipline to spend till your heart’s content.
Barefoot Bondage was borne out of my inability to budget.
Life is unexpected parties, presents and parking fines, not prioritising every last cent.
I finally came to the conclusion that the urge to splurge is inbuilt in all of us. It’s spending, not saving that’s sexy.
“Life is unexpected parties, presents and parking fines, not prioritising every last cent.”
Stay on track
The hardest thing about getting your money sorted is summoning the discipline to stay on track – and that’s exactly what Barefoot Bondage provides.
Forget the whips and chains – the tools needed for this job are an understanding of where your money goes, and high yielding savings accounts.
So let’s take a look at how you spend your money.
When budgeting most people only focus on the big things like rent or mortgage payments, food and transport.
Unfortunately these costs can only be avoided if you’re doing time in jail – and if that’s the case, I’m tipping money isn’t your biggest concern.
A realistic picture is this; the day your money goes into your account, you feel rich and life’s good. Over the course of the week you hit the ATM for varying amounts and varying purposes; a magazine, a few beers after work, the occasional taxi ride home.
Towards the end of the week you check your balance and it’s getting low. Where did it all go?
Weighing the little things
Most of us find we spend our money in little ways, like buying a coffee on the way to work. It’s no big deal – just $3 a day, but adds up to almost $800 a year.
Ok, so now it’s choice time. Which would make you happier – the cup of Joe each morning, or waiting to get to work to make a coffee, and saving that money to fund a week in Byron Bay with your mates?
Every dollar you earn should be directed towards the things that make a difference to you.
Throwing money away
According to the Australia Institute, Australians waste $10.5 billion a year on goods and services that are hardly ever used – and I’m not just talking about Casey Donovan’s last album. Last year we threw out $5.3 billion in unused food, and wasted billions of dollars on gym memberships, CDs, books and clothes that we never used. This is ludicrous!
The golden rule of wealth is to make sure you pay yourself first. Too many people get caught in the trap of working their butt off to pay everyone else. They put their nose to the grind to pay Mr Telstra, Mr Visa or Mrs Ikea, without paying the most important person – themselves!
Simple steps to saving
It’s a three step process.
Ask yourself what you really want.
Get some goals. Then work out how much you’re spending on stuff that you can do without.
What you don’t see, you don’t spend. So set up a high interest online account and have your payroll officer deposit a set amount in each pay.
Most online accounts don’t charge bank fees, offer a high rate of interest, and don’t have debit cards attached that allow you to lash out every time you flirt with David Jones.
The combined forces of high interest rates and regular deposits will mean you’ll achieve your goals in no time. I have personally used this system for many years. I direct small amounts to different accounts, each of which fulfils a financial goal that I’m striving towards.
My goal is to spend every last cent in my everyday bank account – confident that I have paid the guy who has been dragging his backside out of bed each morning and earning it. Me!
Tread your own path!