While I do track my spending with things like Mint.com, there are really only two saving/budgeting ideas that I actually follow these days.

it's simple. I know myself, and if it's simple then I'll be more likely to follow it. Honestly, things like clipping coupons seems like too much work to me to do on a regular basis. Don't get me wrong, I will look for the best deal on a new computer or kitchen knives, but those are one off purchases, not regular routine. The reason that I only use two principles is because. I know myself, and if it's simple then I'll be more likely to follow it. Honestly, things like clipping coupons seems like too much work to me to do on a regular basis. Don't get me wrong, I will look for the best deal on a new computer or kitchen knives, but those are one off purchases, not regular routine.

The Stranger Test

When you are thinking of purchasing something, imagine a stranger holding the item you are thinking of buying in one hand, and the cash equivalent in the other. Which one would you take? Or what if they were holding a piece of clothing you liked and $80 in the other hand? Seems like a simple enough method to me.

Recently I started a new job and found that the lunch options nearby were both terrible and expensive. Basically, I found that I would spend $9 per day on a mediocre sandwich or $14 on a lunch that I would actually enjoy. But you know what I like more? A stranger handing me $9 per day to make my own damn sandwich! And that's the story of how I started bringing lunch to work!

I also think it's very important to use a stranger in this scenario, if you imagine your shopaholic friend holding out those new sneakers they will probably try to sway you one way or another. Or if you imagine a tree or an alien offering you those things you'll probably be like "oh shit, a talking tree. I have to get a video of this on my phone.".... Well, I guess you could just pretend each option is sitting on a chair, but the "chair test" doesn't sound as good...

Saving Strategy

I was saving a good portion of my income for a long time but I didn't really buckle down on it until I read this line over at Financial Samurai:

That was when I really thought about saving more. I thought that if I was saving 20% or 30% of my income then I was doing great, but if it wasn't a struggle then why wasn't I saving more? Where was that extra money going? I didn't have a really good answer for it so I decided to crank up my savings to the point where if I wanted to buy something out of the normal, I really had to give it some thought.

The One Strategy That Explains Both (I just came up with this while writing)

Now that I write this out, both of them fall under mindfulness. Mindfulness is a concept of focusing your attention and awareness to whatever is taking place. If I really think about each spending decision it helps me realize the value of each option. When I can use mindfulness to reduce my spending I can also increase my saving with those same actions.

It's interesting for me to see the rabbit holes of my own mind by simply writing things down. This is exactly one of the reasons why I write this blog

Photo by Zee : Pak Ou Caves - Luang Prabang, Laos