BLOG – I’m Underspent. I’m NOT deprived. I DON’T go without. I’ve got ‘fun’ and ‘luxuries’ bank accounts (2 minute read)

I’m Underspent but I’m not deprived and I don’t go without because I’ve got 11 bank accounts. One is for fun.

For me being Underspent is about ‘not buying just for the sake of buying’ and not Impulse Shopping. There are benefits too; I spend less than is expected or required, I’ve got cash in the bank and I’m happier and more content.

The main reason why well-paid professional men and women are in debt is overspending – ‘buying just for the sake of buying’ and buying things that aren’t really wanted or needed.

85% of adults don’t know how much money they spend each day, week or month.

There’s a little bit of Impulse Shopper in all of us. Before my year of no buying I found it very difficult to walk past a bookshop without being sucked in by yet another ‘Buy three books for the price of two’ offer.

In 2014 I broke my habit of Impulse Shopping. I changed my spending and transformed my savings. I saved $52,680 in 12 months. It started as a lifestyle experiment, but it changed my life, so I kept on going. Now I’m on a mission to end the ‘buying just for the sake of buying’ epidemic.

Budgets alone don’t work. When you have your money in one bank account you spend it.

To change my spending and transform my savings I set up 11 bank accounts.

My grandmother had three or four different jam jars where she kept cash for different household bills. 11 accounts allowed me to replicate Gran’s jam-jar system in the digital world. I named each of my eleven bank accounts e.g. ‘Fun’ and set a clear monthly budget for each account. On the day I’m paid, I transfer – or allocate – money into each of the accounts, which allows me to track what, how and where I spend.

I have a bank account for ‘fun’ and one for ‘luxuries’ so I’m Underspent but I’m not deprived and I don’t go without.

Will you give it a go?

  • Book me for a talk or presentation at your workplace E: rachel@cyclingrachelsmith.com
  • BUY the Underspent book. Available in e-book, iBook & kindle formats ($2.99) or paperback ($12.95) here ‪‪https://amzn.to/2uGHYJh‬ or via my website ‪www.cyclingrachelsmith.com‬‬

Until next week…