More on theoretical savings

[thebratqueen]

I have no idea why I'm in such a philosophical mood today, but there we are and I appreciate y'all indulging me =)

Anyway, there were some good practical suggestions to my last post and some good questions too. The questions got me to thinking about the idea of coming in under budget vs. maintaining a savings, and my thoughts got way too geeky so

Comments

[thebratqueen]

That's an interesting idea. Esp. since it works on the same level as the feeling of effort spent. So even though someone has given X effort, they may have an emotional benefit of Y.

Very interesting. I like that.

[thebratqueen]

That makes sense.

Something else that occured to me is that perhaps another factor is that over time temptation becomes easier to resist. Like if somebody is trying to quit smoking it's probably harder for them to resist having a cigarette on the first day than it is after a year of not smoking.

So the same thing might apply with resisting the urge to spend that $100. On day one it might take more effort than on day 365. So by the end of the year it might not be X=$0.10 but rather 0.5X=$1. Less effort, more savings.

[gradeafan]

I have to comment....ICON LOVE!!!

g

[thebratqueen]

Hee! Thanks =)

[rubyblushu]

I don't know, I think it depends on what you are able to do. It's kind of like the coupon thing. It doesn't matter how cheap the unbagged lettuce was if you don't use it.

For me, it's easier to save the money. It's a simple matter of setting it aside and not using it. If I don't see it, I usually forget about it. However, if I'm in the store, and try to save the extra $5 dollars, it's more difficult, because the item is there, right in front of me. Say, for instance, I go to Wal-mart, and find a really cute, $5 toy for my niece. I might look at it and think, do I really need to buy this?

I'll spend the next 10 minutes agonizing over whether or not I should buy it. Will I regret buying it? Will I regret not buying it?

I'm more likely to say Oh, screw it! and just buy the item.

If the money is in an account, though, I can just not do anything w/ it.

[lyorn]

Unlurking...

So, given that, it made me wonder if there were ways for people to keep themselves motivated, and to make the money they hadn't spent feel as real as the $5 grocery money.

I solve it by having two different pots, one for "savings" the other for "budget underrun". Savings is as far out of sight as possible. (Under the sock drawer, at the bank, whatever), while "budget underrun" is a physical pot on top of the DVD shelf. If, at the end of the week, I have spent less than budgeted, it goes into the "underrun" pot. As soon as there's sufficient money in the pot for a good shopping spree, then shopping spree it is.

Keeps me happy, keeps my mind off the sock-drawer-savings, and thoughts of the pot on the DVD shelf help me to say "no" to luxury groceries.