learn to save money

We have moved another step down the road. Now that we have a successful monthly routine/saving plan that has worked for over a year, we have moved on to the next stage and begun to plan our longterm, big expenditures. Better to spend the money on things we want and/or need, and not let it slip away with impulse purchases.
To help with the planning we have created one of those free online whiteboards and whenever we have an idea or want to change something one of us goes online and adds or subtracts.
At first we had one long list, but we have broken it down into longterm, short term, and nice to have.
By writing things down, we keep make explicit what we are thinking and there are no surprises.

I’ve finally gotten my line of credit down to zero, the car is paid off, and all credit cards are up to date. It was a struggle, but now I’m ready for phase two: actually building up my cash reserves. I’m probably 5 years or more away from full retirement, so I have a limited time of big earnings in which to do it.
One thing I have to be careful of is the lure of “toys”: a new car, electronics, gadgets. I’m in the demographic that advertisers don’t really hunger after, so there will be less temptation. My “vices” now are small: a bottle of wine on Friday night, the odd new book, and coffee at Starbucks.

My life has seen quite a few changes over the last six months. I’ve sold my house and moved in with Christine. We share all expenses, so I’ve got more money available. I’ve spent quite a bit of it on a stereo and a garden shed, but I’m a little ahead and gaining every month.
I used to have car payments but I got rid of the outstanding balance with some of the proceeds from the house. Also, I used to put aside a bit of money every month to cover the taxes on the house. In both cases I’d set up my bank accounts for automated transfers of the amounts from one savings account into a special one that I didn’t touch. Without thinking about it I let this go on for a couple of months after my move. Lo and behold: savings! I’d gotten used to not having this money as part of my monthly operating budget, so I didn’t miss it. So, I’ve decided to let it pile up. My current car is 7 years old and beginning to show its age and we’ll probably want a vacation next summer, so the accumulation won’t go on forever. But, when I do feel the need of some extra cash it’ll be nice to dip into the savings instead of the line of credit.

Most of us know that some things are good for us and that some things are bad. Saving money is generally good, unless it makes you a miser. Junk food is bad, except if you are hungry and the other choice is starvation. We all know this kind of stuff, yet we carry on wasting money and eating cheesies. Wasting money and scarfing junk food are both manifestations of unthinking, impulsive behaviour. We have to get rational about our food and about our money.