Over the past month or so I have been incredibly busy. School assignments galore and other events that have kept me busy. As a result of this, the hours I have been available to work have diminished  exponentially. Since my bank account balance is directly tied to the numbers of hours I work it too has sunk to a embarrassing low.  I should say that I treat my investments, no matter how liquid, separate from my bank balance.

Because of my low balance I have been forced into living a very frugal lifestyle. Now I’m not complaining, not in the least. But I just want to show everybody how easy it is to not spend money when you don’t have much to spend. This is one of the reasons I don’t like budgets. For example suppose I normally spend $1500/month (this number is completely made up) on everything from bills, to gas to going out with friends. Now say I hear some financial planner give a presentation, he says everybody needs to save. So immediately upon getting home I set up a budget where I only spend $1300/month.

Not bad right? Saving $200/month is pretty good and if I’m diligent enough and actually follow my budget I would have no problems. But lets suppose a different scenario, say I now I can only work half the hours so each month I’m only bringing in $750. Ouch! I now can only spend half of what I used to each month. What will I do? Well there isn’t much of a choice I will just spend half as much as I used to. The lack of income has forced me to save $750/month. In other words I was forced to save money.

So instead of working half the hours, why don’t we just put this restrcition upon ourselves. Each month take out some money and invest it automatically. This forced saving will keep your retirement accounts healthy while you don’t even have to think about it. Its forced saving.

I know I’ve brought this topic up before. But I just wanted to show that forceful saving works and a real life example should help you see that. So I suggest that everybody goes out and sets up an automatic savings program at their bank.

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Filed under: Debt, Frugal, Saving