January Freeze

 

The January No-Spend Challenge

Well here we are 10 days into January. This week we will be getting our first round of credit card bills and the like and its a shell shock. Like did I really just spend that much last month? Well yeah, you did. So what do you do about it. Well its time to FREEZE! No spending! Three years ago, James and I started this thing, we do a spending freeze during the month of January (and sometimes into February) We are only allowed to spend money on the following:

• Mortgage / Rent
• Electric / gas bill
• Water bill
• Cell phone
• Cable bill
• Credit Card bills (payments only not use them)
• Loans
• Groceries
• Gas

THAT'S IT -- nothing else.  Now James and I start this on the first full week of January, namely because we need a day or two to get things organized. We write out our mission, we write out our goal, we write out our budget for groceries and our allotment for gas. We specify the exact number of times we are allowed to fill our tank and have to make that last ALL Month. We set out the amount of money we are allowed to spend on groceries and it has to last all month. Its definitely not easy to freeze spending for a whole month. BUT its necessary. Many people fail to see where their money is going and then wonder why they can't make ends meet sometimes. Freezing your spending helps you see exactly where you money goes and how much you waste. Last year during our January/February Freeze we saved almost $1,000 a piece. Think about that. $1,000 in two months on meaningless spending.  Now I make no guarantees on how much you can save but I can tell you, you will see just how much you do spend on things. I suggest you start small. Try it for a weekend and then a week and then 2 weeks and build up to do the January Freeze. 

Here's a couple of things that come up that well may need to be handled that don't fall into the above categories. 

•  broken car
•  broken home operating systems (heat, plumbing, windows)
•  medical emergencies 

BY ALL MEANS FIX THEM!! Avoiding fixing things such as car and you home when they are a minor bill could costs tens of thousands down the road, which is something none of us want to experience. 

I'm no money expert. But its definitely worth taking the time to see just how you actually spend your money, where your money goes, where you spend the most money and where you can adjust your spending.  I know every household is different so to do this challenge you have to speak with you spouse/partner/roommate and take a look at your own individual household bills and income. Stay tuned to see how our challenges ends up. 

Semper Fi,

James & Comfort