A while back I wrote about the Theory of Constraints.
Today I’m coupling that idea with a new one that has become very relevant to me – the power of saying “no”.
Budgeting cash (i.e. planning what you want the money that you have in your pocket to do for you) will teach you how to say no to stuff.
This is the opposite to using credit cards – which teach you to say yes to almost anything you want.
Budgeting will make you a disciplined spender who says no to things based on what you have in your pocket. Whereas credit cards will make you an unbridled, undisciplined, frivolous spender who has almost no limits to the petty things you can buy. And as we all know petty things add up.
Whilst doing my budget for this month, it hit me very fast that I don’t have enough money to do everything and anything I want. This made me start changing and adapting my plans right off the bat.
I wanted to fix my jeans. This would cost about £70 I estimate for two pairs of jeans. Unfortunately I had to say “not yet” to this because I was short on the amount I know I would need for petrol this month – so I had to replan and decide not to get the jeans fixed this month.
I would have to carry on wearing the one un-torn jeans I have and my chinos until next month.
I’m finding that financial constraints leads to being creative. You can’t just throw money at something, so you have to find a different way and a result that might not be perfect but is adequate for the time being.
This is a very important financial lesson and mindset that I have lacked over the course of my life which has resulted in me getting into debt several times over.
I’m hoping that going cash only now and living on a limited budget helps me to learn the very valuable and important habit of saying “no” and “not yet”.
