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A life you love on a budget you can afford.

Here on TBM®, I provide you with simple, easy-to-follow solutions to help you budget your money, pay off debt, save more, and crush your financial goals. But more than that, I give you the tools to start doing the things that matter most to you, on a budget that actually works!

How to Live Within Your Means Without FOMO

October 29, 2020
FINANCE 101

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Let’s be honest: sticking to a budget is not always easy, but that doesn’t mean it’s impossible. Here’s how to live responsibly without feeling like you’re missing out!

Let’s be honest: sticking to a budget is not always easy.

Sure, creating spreadsheets and developing a plan to pay off debt can help you live within your means. But what happens when the girlfriends call you for an unplanned night out? How can you possibly say “no” when your extended family calls for a last-minute family reunion?

It’s during moments like these when FOMO (the fear of missing out) is all too real. 

Social media and pop culture are major driving factors behind this. It’s difficult to avoid comparing yourself to the perfectly curated images that fill our newsfeeds. It also makes it challenging to enjoy and engage in the present moment fully. 

Fortunately, it is possible to live life fully and richly without breaking the bank. Here are a few tactics to consider. 

Avoid “One-Time” Offers

Only purchase what you need and avoid buying items simply because they’re on sale.

Successful marketing experts specialize in consumer psychology. They take advantage of urgency and scarcity mentality to trigger consumers into spending. One-time offers and limited-time deals are designed to make us feel as though we’re missing out. When these emotions are activated, we’re more likely to act on impulse than on reason.

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These are some of the common marketing phrases designed to trigger FOMO:

  • Time: Limited-time, last time, today only, 24 hours only, deadline, countdown, etc.
  • Speed: Hurry, fast, now, act now, don’t delay, approaching, quick, etc.
  • Scarcity: Supplies limited, once in a lifetime, last chance, never again, etc.
  • FOMO: Now, only, offer expires, exclusive, don’t miss out, etc.

If you see any of these marketing words or phrases, think twice before making the purchase. 

As compelling as urgency and scarcity marketing can be, remember that businesses must continue selling these products to stay in business. There will always be another sale, another clearance rack, another “must-have.”

Prioritize Connection Over Consumption

Living within your means doesn’t mean you have to say no to social activities.

Do your coworkers want to go to happy hour? Are your girlfriends planning a night out? Do you finally have a date night without having to worry about the kids?

You can still enjoy all of these moments! However, remember that the important part is to prioritize the connection, not the activity itself. 

To do this, set clear boundaries for yourself beforehand. For example, a happy hour with coworkers doesn’t mean it’s an endless night out. Is the special a buy-one-get-one-free? See if there’s a coworker willing to split that deal with you!

Likewise, a trip to the mall with friends doesn’t mean that it’s a competition to see who can spend the most. Prioritize the quality of the time you spend together. You might even think of yourself as the fashion advisor who says “yes” or “no” to a friend’s outfit. Sure, you can even try on a few outfits for fun! But this doesn’t mean you should needlessly spend just to “keep up with the Joneses.” 

When you shift your mindset to prioritize connection over consumption, then going out with friends suddenly becomes less intimidating. 

Save for Vacations

When people talk about savings accounts, they’re typically talking about saving for retirement, saving up for a down payment on a house, or building a rainy day fund.

However, you should also save for fun things that you would like to do in the future, like a vacation to Europe or a Disney World trip. 

By strategically saving for vacations, you will be able to enjoy the trip when the time comes. Often, the stress associated with vacations can be pinpointed to a lack of financial preparation. When a trip is all paid for (thanks to your diligent planning in advance), it is easier to take advantage of that much-needed rest and relaxation.

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Thanks to today’s technology, it’s easier than ever to automate the savings process. One of my favorite resources is CIT Bank. CIT Bank is an online-only bank, so they are able to pass along the savings from brick and mortar locations to customers through higher interest rates and competitive CD products!

Whatever product you choose, the key is to begin the habit of saving and to remain consistent!

Drive Used, Buy Used

One of the biggest misconceptions about living on a budget is that you can’t make any big purchases at all. 

This simply isn’t true. 

Rather, the goal is to spend within your means and to save for the future, including major purchases such as a car or home! If you want something brand new, ask yourself: do I really need this brand new — or do I simply want the perceived “status” that comes with a new purchase?

Purchasing a previously owned car will help save you from the initial shock of depreciation as well as a high loan payment. 

Other high ticket items that you may want to consider purchasing used include:

  • Gently used furniture, including dining room sets or entertainment setups
  • Electronics, such as laptops or tablets
  • Musical instruments (if you have any kids starting band or music lessons)

Differentiate Between Being Frugal and Being Cheap

The terms frugal and cheap are sometimes used interchangeably, but they are completely different words with entirely different mindsets behind them. A cheap mentality can make the feelings of FOMO worse, whereas focusing on frugality alleviates the worries of FOMO. 

Living on a budget doesn’t mean you’re cheap. It means you’re living with a financial plan to help you achieve short term and long term goals. 

Here are key differences to remember:

  • Cheap means you spend less, but frugal means you spend smarter.
  • Cheap means you are fixated only on the cost, but frugal means you are focused on what brings you value.
  • Cheap goes for the lowest priced option no matter the alternatives, but frugal allows you to consider the various factors to help you find the best value. 

In other words, being cheap can result in FOMO. But being frugal will allow you to enjoy life responsibly while also saving for you and your family’s future!

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Focus on What Truly Matters

Spending money shouldn’t equate in increased happiness.

Instead, focus on the things in your life that bring you true joy. The people you spend time with, memories made, and experiences shared are what truly make life special. When you focus on these things, it’s suddenly easier to put FOMO in the backseat or even in the rearview mirror. 

Living a frugal and financially responsible life shouldn’t feel like shackles. If it does, remind yourself that living within your means is actually freedom. It is freedom from stress, freedom from debt collectors, and freedom from living paycheck to paycheck. Spending less money does not mean that you’re missing out on the opportunities of life. Instead, you are laying the foundation for a healthy financial future you can be proud of!

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Filed Under: Tagged With: BUDGETTIPS, FRUGAL, FRUGAL LIVING

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Comments

  1. Rosa says

    October 29, 2020 at 4:18 pm

    Thank you for sharing all this info. I do follow and read along
    I have yet to start my savings. Hopefully I will get on track soon

  2. Carol says

    October 30, 2020 at 6:03 am

    The first step to eliminating FOMO should be creating Financial goals. These goals will override instant gratification hands down if you really really want to make your financial goals a reality!

  3. C says

    October 30, 2020 at 9:16 am

    We always tried to put some of our tax return on the side if we could for vacation, then just used our credit cards for the rest. I never thought of opening a vacation savings account. Now I have a vacation savings account and use a TBM savings tracker and it has helped so much. I love coloring it in every time I make a deposit. The visual aids help so much.

  4. Ana Colon says

    October 31, 2020 at 11:21 pm

    You are awesome! If I had known all you teach about financing and budgeting when I was younger I would not have struggled so much. I do have 4 savings accounts. One for automatic payments, one for rainy day (emergencies), one I call blessings,, gifts, Christmas, vacations, and one for long term goals. It was one of the wisest thing I ever did. My checks come in they amounts I want to put away are automatically done. Monthly Payments are made without writing checks. I keep a 2 column ledger with all my info, how much I owe, how much I pd that month, and goals for the year.

    • Windy says

      November 9, 2020 at 4:35 am

      Those sound like good categories. I will use that! Thanks and God bless you!

  5. Karen Heffernan says

    November 1, 2020 at 6:12 am

    Looking forward to learning how to save money. Living paycheck to paycheck is hard, especially when you’re not ready for surprises!!

  6. Melissa says

    November 1, 2020 at 6:04 pm

    Great article, Miko! Thank you! I’ve been practicing telling myself “not now, but later” with regard to some purchases to keep me on budget. Telling myself ‘no’ makes me feel like I’m poor and lacking. Saying ‘not now, but later’ means I do have the resources, but I am choosing to put my money elsewhere at the moment. I am also mindful not to say ‘I don’t have any (extra) money this month.’ Instead, I tell myself and others, ‘I have different priorities for my money this month.’ It’s a HUGE mind shift and is so empowering. The way I talk to myself about money is so important. Thanks to your posts and Budget By Paycheck workbook, I am finally able to follow a budget and it’s fun! I am seeing progress in my debts going down and my assets increasing. I LOVE the savings and debt trackers, too! They keep me motivated and remind me how far I have come in a short time! Thanks again for sharing your method and changing my life in such a hugely positive and profound way! All the best! 🙂

  7. Anonymous says

    November 3, 2020 at 2:09 am

    Thank you.

  8. Anonymous says

    November 7, 2020 at 4:47 am

    Great read! I love your articles. I have learned so much from you.

Hello, I'm Kumiko, but everyone just calls me Miko. Welcome to my blog, The Budget Mom. I am an Accredited Financial Counselor® , and mom to a rambunctious boy. Come along with me as I strive to live a life I love on a budget that I can afford. Read more about me.

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