Turning my bad spending habits into silver

As a continuation of my post “Turning my Starbucks habit into silver” I have decided to extend and improve on my personal financial goal of investing in silver and improving my spending habits. As November comes to an end my goal to avoid Starbucks and reallocate that money to buy silver coins was a success. This success has prompted me to take the next step in my larger plan to cut spending and continue growing my collection of silver coins.

In November I was able to save $83 by not going to Starbucks and in turn was able to purchase two 1oz silver coins. With December only a few days away I wanted to continue my effort to reduce needless spending. As I did in the beginning of the month I started looking at my mint.com budget and goals for December. I follow my monthly budget precisely, and in keeping with the theme of the previous month, have decided to reduce the budget column for fast food.

My fast food budget is $100 per month which I never really used completely. In reviewing the past 3 months, my average fast food purchases were $72 a month. Fast food is clearly not a necessity to me and I think is a great target for my next step in reducing bad spending habits, so I have reduced my $100 budget to $25. This reduction will be a challenge to me though, as fast food is often a staple for work lunches and will need to be replaced with brown-bag lunches and leftovers.

Combining both my Starbucks and fast food spending habits brings me to a savings of $155 for the month of December. If successful in this goal, at the current rate of silver, I will be able to add 3 more 1oz coins to my collection.

I am not making drastic changes to my budget, these gradual reductions to my finances allow be to develop good spending habits over time. One mistake I often see people make are large changes to how they spend money. Often this leads to frustration and despair in your personal finances and makes it easy to fall back into poor spending habits. By setting small attainable financial goals I am able to avoid these pitfalls and continue growing my financial well-being.