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Budget > Controlling Discretionary Spending
Putting a limit on expensive habits is an effective way of
managing your spending. Cutting back is a very important part of saving money,
but it should not require that you take all of the fun out of your life.
Creating a set of guidelines to govern discretionary spending will limit
unnecessary spending and help you save money. If you go to the movies five
times per month, you can create a guideline that limits trips to the theater to
just two times per month. Creating a set of guidelines is even more successful
and easier to adhere to when combined with substituting for costly
discretionary spending habits. The sacrifice that you make by cutting back can
be made easier by substituting expensive spending habits with less cost costly
alternatives that offer nearly the same amount of personal satisfaction. Using
the movie example, an alternative that you could use is renting movies instead
of going to the theater. If you have a family you will not have to purchase
multiple tickets, your only expense will be the movie rental. Not only will you
save money by not paying for movie tickets, you will also save by not buying
movie treats such as popcorn, soda, and candy. The sacrifices that you make are
temporary, and when you reach your financial goal and feel as though your
finances are more stable, you can re-adjust your budget to allow for more
discretionary spending.
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