Stopping bad habits through habitual saving

Are there things in your life where you know deep down inside you shouldnt be buying but you buy them anyway? I think that one way to stop this habit is to create an account that you put money in whenever you do not buy that item as an incentive to stop buying that particular item.

When I was about 5 years old I remember my dad smoking all the time. He told me that he used to smoke 2 packs a day! Besides the fact of not being a positive example for me, it was costing him a lot of money. My dad also was taking the train into New Rochelle to pick me up, then going back to NYC, only to do the same thing again to drop me off. What my dad did to stop smoking was to simply put the money he would have spent on cigarettes and placed it into an envelope. After about 6 months of doing this he saved enough money to buy a cheap used car that he used to pick me up whenever he came to see me. By the time he bought the car he did not feel dependent on smoking.

I have been thinking of this story for a while now, and how it relates to not only me but other peoples finances. I feel that most people have habits that do not represent their values in life and could be used in a more constructive manner. In the book, "Your money or your life", (a book I highly recommend as the first book people read for personal finance) the authors talk about how you should spend money that is aligned with your values. If you have a habit such as smoking, drinking, or gambling, I think that a good way to see the negatives of these habits is to save money in an account and see how much you are really spending.

My dad literally put money in an envelope and constantly went to the bank to get the right amount of money. Luckily in this technological age you do not have to do that. You can simply open an ING subaccount and name it for whatever your habit is. Then, whenever you feel like doing your habit, just make an electronic withdrawal from your checking account to this subaccount. Not only do you not have to put money in an envelope, but you will earn interest.

I feel that having some type of goal for this money will keep you in your plan. For instance you have a drinking habit and you put $15 in the account every time you want to drink but dont. The plan is to spend this money on a trip somewhere you want to go. With this plan you will be much more likely to keep on your plan.

As always, comments are encouraged!

Fiscal Fast Day 4

The challenges of getting through the day without spending any money.

Good day. I went to Barnes and Nobles, saw a special someone, and read a bit of "your money or your life", which really is a good book. This years fast is a bit easier than last years.

An estimate of how much money I would have normally spent that day.

Housing = $13
Food = $3
Gas = $3
Total = $19

An observation (positive or negative) about my fiscal fasting experience that day.

It was another good day, as I feel that I am not completely dependent on money. The past few months I have been spending more than it seemed necessary,but I think after this fast I will be a little more responsible. I have made some subaccounts at ING, most notably for vacation and for car repairs, and I think that when I get out of debt I will add additional categories such as housing and car.

Fiscal Fast Day 3

The challenges of getting through the day without spending any money.

Not a bad day today either. I mostly stayed at home, and I went to my open enrollment meeting for health benefits.

An estimate of how much money I would have normally spent that day.

Housing = $13
Food = $4
Gas = $1
Total = $18

An observation (positive or negative) about my fiscal fasting experience that day.

I made a pizza from scratch which was really fun and came out better than I expected. I read a lot of an economics book, and played some video games. The stock market went way down today, but it is what it is.

Fiscal Fast Day 2

The challenges of getting through the day without spending any money.

It was a really easy day, mostly because I was treated to lunch from my principal, and dinner from a special someone. The only challenge I had was to bring lunch and dinner on the road because I wasnt planning on staying home during the day.

An estimate of how much money I would have normally spent that day.

Housing = $13
Food = $9 (if i paid for buffet, $2 is I dont count it)
Gas = $4
Total = $26

An observation (positive or negative) about my fiscal fasting experience that day.

It was an easy day considering I was treated to two meals. Money is not as important as the relationships and friendships you build.

Fiscal Fast Day 1

The challenges of getting through the day without spending any money.

It was an easy day. I stayed home literally all day. Saw the wilmington final, and cooked a huge chicken casserole. I figured that the casserole cost about $6 to make and it will be about 5 meals. Really good deal and good for you.

An estimate of how much money I would have normally spent that day.

Housing = $13
Food = $3
Gas = $0
Total = $16

An observation (positive or negative) about my fiscal fasting experience that day.

It was good to start this fast after doing it last year. I thought a lot about money today and my goals for the future. I have come to realize the importance of an emergency fund, and I have also thought more about how to spend money on things I love, and not on things that I do not really care about.

Fiscally Responsible Independence Day Fiscal Fast Week

This year I have decided to begin the fiscal fast the day after independence day. It just seems appropriate to do it now as a way to have stronger feelings about the dependence of money.

I encourage you to read about last year's fiscal fast by clicking on the label for it on the right side of the screen.

A few details...

Last night I filled up my gas tank at the nearest gas station to home.
I did go to the grocery store on Thursday last week and spend about $30. However, I did not plan to do the fast this week so it seems ok.
If there is a genuine emergency such as my car breaking down then I will break fast (no pun intended).
I will continue the fast until Friday.

I will be leaving a journal entry each day next week concerning the following...
The challenges of getting through the day without spending any money.
As estimate of how much money I would have normally spent that day.
An observation (positive or negative) about my fiscal fasting experience that day.


The main reason why I am doing this is to find ways to enjoy life without depending on money. Also, I want to find places where I could lower miscellaneous expenses and I think by fasting it will show me ways I have not thought of.


Please leave comments of your thoughts or encouragements.