The Secret Method To Spend Money


In the previous post, we have discuss on how to spend your money consciously i.e how not to spend on things you don’t care for so that you can spend the money on things you love. In this post I am going to share with you a secret method which will help to cut out your unnecessery spending. The method is non other than the À LA CARTE METHOD. This method takes advantages of pychology to decrease your spending. The word “decrease” does not mean that you have to spend your life by compromising everyday with your needs rather it stands for that you are not going to waste your money which you can use on the other valuable things. This method simply teach you to use psychology against yourself to save money and use that money to grow yourself.

The À La Carte Method works for three reasons:

1. You’re probably overpaying already:For example- Most of us dramatically overestimate how much value we get from subscriptions. For example- Gym members who chose a monthly fee of about $100 attended an average of 4.3 times per month. That comes out to more than $23 per gym gym visit- when in reality they’d have been better off buying pay-as-you-go passes for $15 each.

2. You’re forced to be conscious about your spending:For example- When you spend $5 each time you want to buy a movie from youtube-and when you actively think about each charge, your consumption will go down.

3. You value what you pay for:You place a higher premium on the things you pay for out of pocket than things via subsciption.The downside of the À La Carte Method:This method requires you to de-automate your life. This is the price you pay for savings money. Use this exercise to”wipe your spending slate clean”- then get creative when you rebuild it.

How to implement the À La Carte Method:

1. Calculate how much you’ve spent over the last month on any dicretionary things or subscriptions you have.

2. Cancel those subscriptions and begin buying these things À La Carte.

3. In exactly one month, check and calculate how much you spend on these items over the last month. That is the descriptive part.

4. Now, in prescriptive part, try to cut down a suitable amount from your spendings gradually. Not too low. You just need to make your spendings to be sustainable not to totally lose touch with the world.Remember, this is not about depriving yourself. It is about reallocation of the money to something you love which you used to waste on things you didn’t really want.

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