海角大神

One of my New Year鈥檚 resolutions was to reduce my hobby and entertainment spending by 50%. Each month, I budget a certain amount to spend on my hobbies and other entertainment sources, with any 鈥渓eftovers鈥� rolling over into the next month. My goal for 2010 was to spend an annual amount that equaled half of what I spent in 2009.

I knew this would be a bit difficult, mostly because I like to buy books (that鈥檚 where the majority of my 鈥渆ntertainment鈥� money goes). So, I decided to make the change a bit progressive to see how it worked.

The first thing I did was calculate the amount I could spend each month in 2010, which was easy enough 鈥� take my total from 2009 (somewhere around $3,000), divide it in half, then divide it by twelve, leaving me to shoot at an average of $125 a month.

Rather than radically re-shift my spending right off the bat, I decided to try incremental change to push my spending habits in the right direction.

So, in January, for example, I set a target of 75% of a typical month from 2009, capping my spending at $180. In February, I dropped it to 70% 鈥� $165. Each month thereafter, I鈥檝e dropped it another 5%, leaving May at 55% of my spending from an average month in 2009. In June, I鈥檒l be at 50% and I鈥檒l stay there for a couple of months, then start dropping further, ending with November and December at 35%. For the year, the total adds up to 50% of my spending for 2009.

Making the changes small and incremental has, at least so far, made it much easier. Each month, I鈥檓 pushed just a little more to use the library instead of the bookstore. I鈥檓 pushed just a bit more to eat out less. I鈥檓 pushed just a smidge more to hold off on buying a new board game, holding off a month or two. I鈥檓 pushed to conserve money for things later in the year that I intend to do.

This idea of 鈥渋ncremental change鈥� works well for other personal goals.

For example, I鈥檓 slowly increasing the amount I walk each day (on average). One week, for example, I鈥檒l set an average of two miles a day. The next week, I鈥檒l raise that average to 2.1 miles.

Now, how do I work through that average? Some days, I鈥檒l walk three and a half miles. Other days, I won鈥檛 take a walk or I鈥檒l take a walk for just a mile (sometimes with my son and daughter over at the park).

The key, though, is that I meet my average for the week and that the average is slowly going up. I keep track of the data carefully using a pedometer so that I鈥檓 sure I鈥檓 meeting my goals.

Another example is moving my diet towards a vegetarian diet. To do this, I鈥檓 including meat in fewer and fewer of my meals gradually over time, replacing the meat with protein-heavy vegetables like beans.

This type of 鈥済radual change鈥� can be used for almost any personal finance goal.

Paying off debt matches this tactic very well. Slowly ratchet up your debt repayment over time, adding a little bit more to your payment each month and figuring out how to live on what鈥檚 left.

Saving for a goal works in a very similar way. Ratchet up your savings a little bit at a time by changing your automatic savings plan to transfer a little bit more each time.

Working through your financial to-do list can be handled by doing one thing today, then two things tomorrow, then three the day after that鈥� and the next thing you know, it鈥檚 done.

The next time you鈥檙e trying to adopt a new habit in your life or make a significant change to how you do things, consider working to it gradually instead of cold turkey. It can really work.

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