One of my jobs in our home is to make the money that we use to run our home go as far as possible. I’m not talking about paying the bills. David does that. I’m speaking more specifically of variable expenses; things that can range greatly in price depending on usage and choice. Spending categories such as groceries, household items, utility use and entertainment are monitored closely by me in order to make our hard-earned money cover as much as possible.
Recently, my hubby and daughter went grocery shopping with me and my hubby was impressed saying, “I can’t believe how much you saved!” It’s true. It was a good week for me at the grocery store. I was happy I’d impressed him. I had certainly gotten my money’s worth. I didn’t actually save any money though; I simply used it to buy more things. I used the same amount I’m allotted every week, not less.
I have a fixed amount that I spend every week. I don’t save any of it. I spend ALL of it. Being a smart spender and being a saver are two different things. My husband puts money into the savings account; I don’t. It’s not to say that there isn’t a connection though. The reason I’m frugal and try to stretch our money as far as I can is so that money is freed up for things like savings. For instance, let’s say I told my husband I could spend just $5 less on groceries each week. If he absorbed it into another expense or if I bought myself a few extra coffees with it then I was simply more frugal with my grocery spending. However, if he took that $5 each week and deposited it into our savings account then I would have tangibly saved us money. Less money spent is not necessarily money saved – but it can be.
Let’s try another for instance: I budget $50 to buy a new coffee pot. I price-compare for a few days and search for deals and coupons, and as a result, I’m able to find exactly what I want for $40. If I take the $10 surplus and put it into my savings account then I have saved money. I really like this idea because it makes my frugal choices literally add up. Living frugal and cutting back can be tough if you don’t see where the money is going or if it is absorbed into something with little value to you. If the money not spent goes toward something meaningful to you like savings or paying down debt, then it makes it feel like frugality has purpose.
I’m actually writing about this because it’s an area I’d really like to improve in my own life. When I spend less money than I anticipated I tend to absorb it rather than save it. How does it work in your home? Does the money you don’t spend get saved or absorbed?
Why I do what I do ~ Chloe modeled her foot for me this morning saying, “Mama, look at my foot paw!” I think all the pretending to be a dog/cat/dinosaur is going to her head.
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{ 4 comments… read them below or add one }
Yeppers, I’ve been there and had the same revelation.
Footpaw…too cute!
I guess it depends. I do all of the shopping, saving, spending, and bill-paying. Sometimes I talk to my hubby about it, and other times, I just do what I think is best. (That’s how he wants me to do it). Sometimes, if I have not spent all of the money “allotted” for something, it will go to pay down debt or a bill that is a little higher than usual.
Great post, Nicki!
Amy’s last blog post..Frugal Tuesday – Cloth Napkins
I feel the saem way whenever I grocery shop and the checker tell me, “You saved $25. today” or whatever the amoun. I always have to bite my tongue to not reply that just because I didn’t spend it doesn’t mean I saved it!!
Love your writing! Thank you!
ps I have a daughter named Chloe, too.
Elizabeth
This was a post that hit home for me! Im all about saving money /but I dont actually save anything.