It feels strange to pass by your favorite deli and not buy the $10 gourmet sandwich you used to buy every week. It may also feel annoying that you have to stop visiting the expensive salon for your luxurious $200 spa treatment every month. But life is full of little compromises.
Consider the alternative: you continue to buy the $10 sandwich every week and get that $200 spa treatment every month. Soon enough, that sandwich will be the only thing you'll be able to eat all week. And the spa treatment will be pointless as stress levels cause your hair to fall out.
Be realistic. Know what you can and cannot control, what you must control, and where you can splurge.
1) Maintain a record
Diaries are your best friend. Seeing a list of things with their corresponding prices will give you the biggest reality check. Whether it's a dollar spent for an ice cream cone or a hundred dollars at a fancy restaurant, document everything so you can be more aware of your own spending habits.
2) Use more of your debit card than your credit card
Your debit card will only let you buy what you have, Meanwhile, your credit card will sneakily create a mountain of debt and you'll face financial ruin.
3) Experiment
Take out one expensive thing from your record that you can do without, and try spending a week without it. If there's no resulting emotional breakdown, then consider it scratched from your list forever! Whether it's a jar of imported tea leaves or a taxi ride to the theatre everytime, figure out what your 'thing' is and scratch it out.
4) Don't believe advertisements
Read their fine print. When a bank card or financial product offers you the financial freedom to buy anything you want, know that they are lying or hiding something. Their fine print will never be the focal point and tell you that it's subject to market risk. Don't believe everything you hear so see. Be cautious when purchasing a financial product.
5) Be reasonable
Don't skimp so much to the point that it affects your health! Buy cheaper clothes, but not cheap medication.
6) Talk to other retired people
Often, they have groups where they discuss things or carpool or have group memberships and discounts. Take their help and advantage of being in that group so you can save on extra unnecessary expenses.
When I was young I thought that money was the most important thing in life; now that I am old I know that it is.
- Oscar Wilde
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