My spending moratorium is over in four days on August 1. Hallelujah!
I told Hubby how well my spending experiment was going and he brought up a great point. You’re not spending anything, he said. “But I’m more in the ‘I can spend’ mindset,” he said.
The possibility that his spending would change during my moratorium had not occurred to me. Once he pointed it out, though, I was nervous that our spending had shifted from the two of us to just him.
Was our total spending in July any less than in past months?
I pulled up our most recent credit card statement, which ended yesterday, and found our total had ballooned to levels not seen since before we started my simple budgeting system.
Uh oh.
What happened? Some of the purchases were in June, before the moratorium started, which I subtracted. Then I subtracted all the business expenses, which were allowed during the moratorium. The total came waaaay down to where it resembled bills from past months.
But Hubby was right. Our credit card bill, which reflects the vast majority of our spending, was about the same. Does this mean I didn’t save any money during the moratorium?
I took a closer look at the bill. Most of the charges were genuinely Hubby’s (a pull up bar from Big 5, a massage, lunch with co-workers) – not him covering for me.
Then I saw it.
A $395 charge from the dentist for a night guard. That expense is paid for by pre-tax dollars we set aside for medical expenses through our Health Savings Account. The money has already been saved. I subtract $395 and our total spending is…REALLY LOW!
In fact, our July spending is less than half of what our lowest credit card bill has been in years. Maybe ever.
I’ve still got four days until I can spend, but so far I’m declaring the moratorium a success!!!
Welcome to Bargain Babe! I’m Mara, and I’m so glad you’re here. I am an obsessive bargain hunter and penny pincher, and I am determined to live a full life without EVER paying full price.
Nice job!!!
I wish I could get my hubby to be consistant. He try’s real hard then he falls off track…
He is my problem.
Congratulations! I find that when I leave my credit cards at home, I spend less… 😉 It makes it too easy to spend if you have them and are NOT on a moratorium!
Julia, we use credit cards for the vast majority of our purchases but always pay the bill in full every month.
However, I find that the ability to just hand over a card for whatever the expense makes it easier to spend.
I think the way to go is to deal in cash as much as possible. That way there IS no bill, and it’s a lot more tactile to go to the bank, withdraw X amount and then see it leave your wallet (or not).
That said, one needs to NOT have a huge credit-card bill looming at the end of the month in order to have that cash available.
I’d love to make that transition from using credit (even though I carry no balance) to using cash.
One thing pushing this for me: Costco. We joined after years of avoiding it (quantities to big … prices not THAT much better than Target … yadda yadda). But between getting new cell phones (they have the best deal and don’t BS you like the AT&T stores), those excellent birthday cakes, great deals on fruit and dog treats, etc., we caved.
Costco only takes Amex, and we opted not to get one; so it’s cash or check only — that’s a start, no?
Steve, sounds like transitioning to cash is the best thing for you. The reason why I stick with credit is 1) my statement tells me exactly where I have spent my money, which holds me accountable 2) credit is more convenient and safe than constantly going to the bank for cash. Hmmm…maybe I should blog about it.
It can be done, great effort, Now let’s see if you can keep those bills low…
Wow Julia you made it! and it WAS a success!
Thank you for doing this. You did it for your
readers as much as for you. You proved that
we all have a choice and if have the will-power
can save save save. I know I need to get it
together with the spending thing. I don’t have
much money and it takes self discipline to
keep from spending on things not really in the
budget. Such as food out . Nice ice cream
breaks at 31 Flavors etc. Your very practical example should inspire all of us. we can do it yeah!
you are an inspiration! what will be you first purchase?
I just booked a massage appointment for Saturday. I have a gift certificate, but the tip will be one of my first post-moratorium purchases. Can’t wait.
The real test is when you see your credit card bills for August and June! If your spending moratorium just postponed spending until the following month or pushed spending into the previous month and June and/or August’s bills are larger than usual, then all you’ve done is shift your spending pattern, not spend less.