Is a lack of money stressing you out? Do you wonder where all your money is going?
The Dollar Diet is simple.
Buy what you NEED. Think long and hard before buying what you WANT.
Every. single. time. you open your wallet or swipe your bankcard, ask yourself:
Is it necessary?
Can you do without it?
Can you make it yourself?
Can you borrow it instead?
Can you save up for it?
Even some of our most basic NEEDS can be slimmed down by growing your own fruit and veg, or bartering and borrowing when possible.
For example, this is my family’s Dollar Diet:
- Groceries
- Electricity
- Internet/phone
- Insurances
- Petrol, vehicle maintenance
- Public transport
- Rates (we own our home)*
- Tithing, sponsor children, church activities
- University money for kids (we put $10 a week into their accounts)
- Doctor’s visits & prescriptions, dentist visits
- School fees
- Extracurricular activity fees (my son plays cricket, my daughter goes to a coding club)
- Gifts (I make what I can myself)
- Haircuts (2 -3 times a year)
- Toiletries
- Rubbish & recycling collection
- House maintenance
- Shoes and clothing
- Holidays/Vacation
- A fun budget: to fund the odd meal out/takeaway/family outing
* Rent/Mortgage is not on the list as we own our home freehold.
My list of needs will doubtless look different to yours. For my husband and I, vacations are vital to our sanity. We take breaks as frugally as possible. But if you’re flat broke, you’re going to have to get creative to find ways to have a vacation.
It’s the things that aren’t on the list that save you money.
No buying lunch everyday.
No takeaway coffee each morning.
No splurging $300 on a pair of shoes that are almost the same as the pair you already own.
No mindless following of ‘fashion’.
No buying takeout just because you don’t feel like cooking.
No subscriptions that give you costly meals, or new clothes every month or entertain your child. You can ALWAYS make cheaper meals, find cool, thrifted items, and do fun, free stuff.
No buying books (that’s why libraries were invented) or pretty tchotchkes for your home.
No lavish gifts.
No recipes requiring pricey ingredients.
No fancy holidays (unless that’s what you’re saving up for!)
No meeting up with friends for brunch at an expensive cafe.
No costly events, concerts, exhibitions.
No extravagant hobbies (unless it makes you money or saves your sanity).
The the challenge and fun (yes, fun!) comes from trying to find free or frugal alternatives to keep living the good life.
Frugal living doesn’t have to be grim! It is definitely possible to live a great life on a budget.
Instead of going out for brunch, host a pancake breakfast for your friends. Take up running instead of going to a gym. Pack your own lunch and your coffee for work. Have a meal or two in the freezer for the nights when you are too tired to cook. Go vegetarian or have more meatfree meals. Buy second-hand when possible. Find a new hobby and make gifts by hand. You get the picture.
The biggest learning I have from being on the Dollar Diet is the importance of having a fun budget. Skimping and saving can get monotonous without a few bright spots to look forward to (I love really good peanut butter, and going to exhibitions. My husband likes the occasional beer and buying tech for projects). These things don’t have to be extravagant, but small treats that feed your soul most definitely have a place in the Dollar Diet. You can read more about having a fun budget here.
Whether you are currently in debt (and my prayer is that you’ll find some help to get out of it here!) or saving up to travel or buy a house, or you simply want freedom from worrying about money all the time, the time to start your Dollar Diet is now!
What are your financial goals? I love hearing from you, drop a comment below.