Ok, Ok! I have tried to stick to writing my purchases down in a notebook in order to track my spending. It comes down to the fact that it is hard to add more work to an already busy life. So, since the ultimate goal is to build wealth and eliminate debt, our spending habits can make or break us, literally! Since we have worked hard to develop a budget and have a real good idea what we spend on a daily basis on incidentals and askidentals….. it is time to work on our spending psychologically. Take your weekly allowance that is normally spent on gas, coffee, and other stuff we probably could live without and set a daily spending allowance.

Let’s use $20.00 per day to make it easy. $10.00 in gas, a coffee and morning paper, $3.00, and $5.00 for lunch…. That leaves $2.00 in the spending budget for the day. Put the money in an envelope, we have something to use that on later. Now the next day. Drive 2 miles an hour slower, $9.50 in gas, look at the paper on line for free while your coffee brews before you leave $1.00, Pack a sack lunch which is probably going to be healthier anyway $3.00. Now you find yourself with $6.50 left in your spending budget, put that in the envelope too. Now, at the end of the week, with these small changes to your spending habits, you will find that you probably have well over $25.00 in that envelope. I have three options for that money.

1. If you have any debt that is delinquent…. pay it

2. If your bills are current but you do not have an emergency fund in the bank… deposit it

3. If your emergency fund is at least one months living expenses, invest it

I am always amazed at how small changes can have such huge impacts in a short period of time. Never borrow from your envelop, you should feel awful if you have an added expense that was not budgeted for unless it is an emergency, and folks, a large pizza and a movie is not an emergency! Unless you ask my Michael and Joe!