Let’s talk about monthly challenges. If you’re not familiar with challenges, they are personal goals that people set for themselves on a monthly basis for self-development purposes. They could be to quit smoking, social media or any other perceived unproductive habits.
If you take this approach to your money management, you might be able to accomplish a lot. There are a couple of benefits of setting your money goals on a monthly basis. First, you can stay focused within a shorter period compared to annual resolutions for example. Second, you can track your progress and know exactly what goes wrong, if it does.
But to set monthly money goals, you must begin with a willingness to commit. And you also should be able to set realistic goals to achieve within this short period of time. In many cases, it won’t be easy but you can practice some good habits by setting measurable goals that are achievable within a period of time.
Here are some goals that can make a good monthly target.
No more dining out
For your own health as well as your money, give up eating out for a month. You can combine this goal with a diet goal or just by itself to monitor your spending. Going through a month of preparing your meals in advance, packing lunches and snacks and hitting the grocery store — rather than restaurants — more often should give you a good idea of what it takes to do the work and how much it costs.
For many people, finding out how much they save and how much healthier they feel can be an incentive to adapt this new lifestyle choice. Of course, you won’t boycott all restaurants forever, but at least get an idea of your potential savings.
Giving up discretionary spending
Every month you have this extra money that doesn’t go toward savings, bills, rent, loan payments, etc. This is the money you spend on online shopping, picking up luxury items or treating yourself to something here and there. For one month, look into your budget and set this money in your savings account or toward a bigger goal like a trip that you want to take.
To be able to go through the month without these small luxuries, you should have an alternative plan as well as a good idea of the purpose. Keeping your eye on the goal can give you strength. And in the process, you will be able to find out how much you actually need to live every month. This exercise could be an eye-opener also if you are willing to change your priorities to achieve goals.
Cutting off a major bill
Have you been wondering if you and your spouse can share a car? Do you think that you hardly use the gym membership? Does your television package seem too expensive for what you need? Whatever the item that has been nagging you, cut it off for a month. Share one car with your spouse to see how convenient it is compared to the cost. Cancel that television package or put it on hold for a month and see if you really need it.
The point is: use this monthly goal to experiment with savings that seem otherwise unattainable. It is one month, so your commitment is limited, but your experience if you do go through the entire month should be sufficient to make a decision.
Even a small downgrade that saves you a fraction of your cost can be worthwhile. Running expenses are a big drain on any budget. If you identify where you can make cuts comfortably, you’re the winner in this case.
The writer, a former Gulf News Business Features Editor is a Seattle-based editor.
One month at a time
Set monthly money goals
Challenge yourself to experiment
See if you can shift money priorities
Understand your financial comfort zone
— R.O.
