By Somerset Advisory on January 24, 2025
As a financial advisor with over 15 years of experience, I’ve noticed that many people struggle with managing their spending. Often, they know they’re overspending but feel unsure about how to start cutting back. Here are some thoughts and insights from my own journey to help you approach mindful spending:
Key Takeaways:
- Cutting back isn’t a straight line: Reducing spending is a process filled with ups and downs—peaks and valleys. Progress won’t always be linear, and that’s okay.
- Personal journey to simplify:
- My family recently moved to a farm with the goal of drastically reducing our lifestyle expenses.
- Unexpectedly, renovation costs have added new expenses, but I see the long-term potential for a simpler, more cost-effective lifestyle.
- Small changes can make a big difference:
- We used to spend regularly on conveniences like fast food (e.g., Chick-fil-A) and frequent coffee runs. Cutting back on those has been a meaningful shift.
- Luxuries like frequent car detailing are no longer a priority—now, I clean the car myself! (and who cares if it’s messy!)
Practical Advice:
- Track your progress: Keep a journal to document your financial journey. It helps you see how far you’ve come and identify areas for improvement.
- Be gracious with yourself: Reducing spending takes time. Celebrate small wins and don’t be discouraged by setbacks.
- Don’t give up: The process can feel challenging, but with patience and persistence, you’ll see the rewards of a more intentional approach to spending.
Final Thoughts:
As the world feels like it’s “shrinking,” many of us are looking for ways to cut back and live more intentionally. It’s not always easy, but it’s worth it. Remember to prioritize what truly matters and give yourself grace along the way.