Now we have a small amount every month that allows us to be able to pay for the hobbies that aren’t free. Since we really enjoy inexpensive activities like board gaming and potlucks with friends, we can also afford hobbies that cost money – my husband is really into Curling (the ice sport) and I enjoy going to the comedy club across the street as often as possible. Our $75 a month of fun money can cover those habits.

Just prioritize and take it from there. Good luck!

Case in point- my clothing. I have seasonal outfits that I brought out this year that are over 14 years old. They are servicable enough, but really! Fabric has a life of only so long, it does wear thin over time and look less than professional for work. And I am not a size that is easy to find for at 2nd hand shops, etc. I can tell you that over the past 10 years, I probably have not spent more than $200/year on clothing (including shoes). This year, however, my clothing allowance needs to move up a bit to allow for wardrobe rebuilding of epic proportions (compared to my historical past of spending on clothes). However, there will be a budget. And I used some found money (extra birthday money I did not expect from my mom) to buy some of the pricier items I’ve been needing.

I would well imagine that this concept of times of lean and times of spending would apply to other areas of money use as well (lean spending on entertainment in summer months when kids can play outside or go swimming for free versus more during birthday times when kids want to go to the movies as a treat). It’s just that as a family, we need to keep the overall balance towards keeping the budget and saving for emergencies.

As for the eating out portion of our budget- this was neglible for a long time- and remains low. Our kids are not exactly well mannered in a restaurant and its something we are working on at home to improve. I can easily estimate that we have gone out to dinner maybe 6 times in the past year- and that was to family friendly places like the IHOP. We do get takeout maybe twice a month- but for the most part, we cook and eat from home. I do get one lunch a week out at work and bring the other 4 days to keep the balance.

That said, I totally agree – time to put some wiggle room back in the budget to reward yourself for staying ON the budget! Enjoy!

The power of the snowball is very impressive, and it builds up momentum very fast, but I think that if you slow it down just a little, you can get the best of both worlds.

For most people, myself included, it’s harder to maintain a drastic change over a long period of time than it is to make several incremental changes that add up. For debt-reduction to be successful, longevity is more important than the initial change. When I want to change how I spend, I choose one thing. I focus on changing that, and, as I’m comfortable, I add more changes.

For going out on the cheap: Instead of turning down friends, I try to suggest another alternative, such as meeting for dessert or drinks rather than paying for a full meal. In the summer, I suggest free concerts and other local events. I often host potlucks.

With close friends, I’ll say, “I want to hang out and need to trim costs. What’s another activity we can do?” Most people are okay with an alternative activity, especially if they help suggest it. ;-) Also, they’re probably happy to spend a bit less cash.