Transcriber:
Let's cut right to the chase:
for most people,
budgeting just doesn't work.
[Your Money and Your Mind
with Wendy De La Rosa]
You maybe follow your budget
for a few days or a few weeks,
but soon, you forget about your budget
and stop tracking the flow of your money.
And there goes your budget.
And that's because of reality is,
most of your budget is fixed.
You can't really do anything about it
without making major life decisions.
Your rent is your rent.
Your phone bill is your phone bill.
Your car payment is your car payment.
But the focus of today is the fact
that many people struggle
with the little, ongoing,
frequent purchases like eating out,
delivery services or shopping.
So let's tackle each one
of those individually.
First, let's talk about eating out.
In my research along with some colleagues,
I found that eating out
is one of the biggest
financial regrets that people have.
The only other expense that's
even less satisfying than eating out
are bank fees!
For eating out, instead of
making a financial budget,
where you tell yourself
you're only going to spend
100 dollars a month
on eating out,
let's focus on what I call
a "frequency budget" instead.
So instead of focusing
on the amount of money
that's much harder to track
and sometimes even impossible to track,
let's focus on limiting
the number of times
that you go out to eat.
You'll have a much easier time saying no
and tracking your budget.
Now, I understand
that we are all social humans,
and eating out is such a social activity.
And if that's what you're craving,
I have some tips
to make sure you can hit
two birds with one stone.
Instead of eating out,
go and have a picnic with friends,
sign up for a workout class
or do any of the hundred social
activities that you can do
without having to spend
50 to 70 dollars a night.
If you plan it right,
you can still satisfy your social craving
and still save your wallet a lot of money.
Now let's talk about delivery services.
A recent investigation found that
those who order through a delivery app
end up spending anywhere
from 7 percent to 91 percent more
than those who dined in,
thanks to the pile of
miscellaneous charges and fees.
In fact, the same item can be
more expensive on the app
than in the restaurant.
Right now, you may be
ordering out more frequently.
One analysis found that
with the addition of delivery apps,
fast food is no longer something
associated with a quick bite on the go.
Given the added baggage
that comes with these delivery apps,
my top tip here is to delete
the apps from your phone.
Now, if deleting it is too
permanent or too extreme,
you can still change your environment
by making as many speed bumps as you can,
to slow down the pace of purchases.
Maybe link the app to a debit card
with a small preset amount of money.
You can also delete the app
after every purchase,
so that it's not
enticing you at all hours.
Now let's talk about shopping.
Let me be clear:
I'm not saying that you
should never go shopping.
What I am saying
is that I encourage you to buy the things
that bring you happiness.
Research has shown that
when you spend money on others,
when you spend money on experiences
and when you spend money on
the things that save you time,
these expenses make you happier.
And I know retail therapy may seem great,
but researchers have found that
spending the same amount of money
on someone else,
even as little as 5 dollars
can make you happier.
So get that T-shirt for your friend
instead of yourself.
Make a donation to a place
that you really love and support
or buy an experience for yourself.
Try something for the first time.
And if you're overwhelmed,
and you're burning
the candle at both ends,
know that it's OK to invest in something
that will free up your time.
Hire a local high schooler
to mow your lawn
or get someone to clean your house.
These may be a little pricey,
but the time you save
will be worth every penny.
By making these small changes
to your discretionary spending,
you can not only spend less
but actually get more
happiness and satisfaction
from your spending.
It can mean a life with
fewer guilty pleasures
and less regret.
Now who wouldn't want that?