Two Canadian Women Who Changed the Way I Spend & Save

My hubby and I went to Japan last year. It was the most amazing three weeks of my life, and I look back on it so fondly every single day. We spent a lot of money on the trip- a lot. It was our honeymoon, so we went all out.

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For the first time ever, after our trip to Japan, I had lingering credit card debt that I wasn’t able to pay off right away. Previously I would never carry a balance on my cards, always paying them off before interest could accrue, but in Japan it was easy to justify charging tons of purchases to my cards, or even using them to withdraw Japanese yen, since “heck, it’s not every day we’re in Ikebukuro!”

To be honest, I don’t regret relying on my cards on that trip and bringing some debt home with me. It was an unforgettable trip, filled with delicious food, shinkansen (bullet trains), museums, ryokan (traditional inns), theme cafes, onsen (hot springs), arcades, and shopping. I treasure every little souvenir and photo book from that trip.

What I did realize, though, was that, because of my regular spending habits, what should have been a relatively easy few thousand dollars to pay off became a hefty burden. Despite my efforts to get the balance down each month, paying huge chunks off with every paycheck, by the end of the month the balance had risen significantly again, mainly because of my regular habits of shopping online.

I can try to defend my online shopping in a lot of ways- we had recently moved, and so we had new rooms that were bare without furniture and other items. Our new place has garden beds, and I felt obligated to get some gardening supplies and try to maintain what the previous owners left behind. My artistic hobbies inspired me to try new mediums, so of course I needed those expensive markers and calligraphy nibs.

The truth is though, most of the time my shopping wasn’t driven by a need- I was browsing the deals on Amazon, chasing the high of new and shiny things. I’m a very privileged person, I am thankful to be able to say that I have all the material wealth I need. So why did I feel compelled to always buy more, more, more?

Disappointed in my apparent mess of a budget, I did what I always do- I turned to the library for answers. A few months ago I found this book called Worry Free Money by Shannon Lee Simmons.

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A lot of times in the past when I tried to read financial books, I lost interest partway through because a lot of the information didn’t apply to me, or wasn’t practical or realistic. Worry Free Money is the first financial book that I read from cover to cover. As soon as I was finished, I created my own financial plan following the simple guidelines in the book.

I can’t believe I had ever tried to make budgets in the past that allocated specific percentages for clothes, entertainment, food, and so on. Who spends like that?! What we spend our money on differs from month to month according to a lot of different factors, so it makes so much more sense to plan the way Simmons explains:

monthly income – fixed expenses – meaningful savings (RRSP, etc) – short-term savings = available spending money. Simple as that.

shannonleesimmons^Thanks, Shannon!

Yes, it’s so simple, but it was a game-changer for me in that it made budgeting approachable, set out an understandable plan I could actually stick to, and encouraged me to determine a set amount I wanted to save each month. I set up an RRSP and began actively contributing to my TFSA again (it had been gathering cobwebs for a while, largely ignored).

However, the problem remained that I had a compulsion to order things I didn’t need, mainly from Amazon. I wasn’t hitting my saving goals, and my credit card balance continued to fluctuate- despite having paid down the initial spending from Japan long ago, it was quickly replaced with a balance from my compulsive late night shopping binges.

Back to the library!

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I picked up The Year of Less, and was inspired by Cait’s decision to set a shopping ban for herself. Cait made a successful effort to stop seeking more material things and instead dedicate her money largely toward memorable and meaningful experiences like travel.

Ever since our trip to Japan, I’ve been dreaming of going back for another visit, but thinking it would be a long time before we could ever make an expensive vacation like that again. Cait’s book make me realize that travelling has been far more enriching for my life than the illusion of happiness provided by clicking “complete purchase” on a cart full of stuff.

cait^Thanks, Cait!

Thanks to these women, I now have a renewed focus on spending less and saving more. My willpower is bolstered by beautiful memories of Hyōgo, Kyoto, Gunma, Tokyo, Osaka, and imaginings of other places in Japan, and the world, that we have yet to visit. 20171015_232501

 

 

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