My wife and I were talking about how the pandemic changed our lives specifically the way we spend our money. Before COVID, we used to go out to happy hours, go out to eat, vacations, travel, and more. Now, we cook mostly at home, hang out at home, and haven’t gone on vacation or traveled as much. We realized something very important about our spending. It’s not about how much you earn, it’s about how much you spend.

If you ever took an accounting class, you heard debits and credits all the time. If not, in bank terms, it’s deposits and withdrawals. Whatever is deposited in your account whether it’s from your job, interests earned, and other incomes, this is the money you have available to spend.

The more you spend, the less you’ll have. The less you spend, the more you’ll have. It’s not rocket science.

During COVID, I was able to work from home. I eliminated my commute costs, no more driving, parking, or taking the train to work. I drastically reduced eating out as we cooked much more at home. I’m saving on gas because of not driving as much. Through all this, we realized that our spending has gone down and our savings went up.

The point is that we might think that we need more and more money to get by. It really isn’t about how much you make, it’s about how much you spend. Read about Parkinson’s Law from my other article that explains why we feel like we need more and more even though we may make enough.

There’s so much advertising and marketing on our browsing and the apps we use. These can entice us to put something in a cart and buy. Before you impulse buy, take a moment to think about the purchase you’re about to make.

Reduce your spending and you’ll see a difference what it makes. What in your life can you spend less, not spend at all, or ways to help save and reduce your debt. How about

• Pack your lunches and spend less going out
• Brew your own coffee
• Cook at home and eat in
• Constantly shop for cheaper car and home insurance
• Pick up change you find on the ground
• Ask for price matching
• Wait for things to go on sale
• If an item is cheaper after you purchased it, ask for a price adjustment
• Look for online coupons codes
• Look for apps that give you cash back rewards
• See if your work qualifies you for discounts such as software apps like Microsoft Office or mobile phone bill

I’m sure there are so many more ideas out there. The point is the less you spend, the more you’ll have. In the beginning, you’re not going to see a huge impact. Over time, your saving efforts will compound and you’ll be able to see a difference week after week, month after month, and year after year. It’s not about how much you earn, it’s how much you spend. If you are interested in following my journey, email subscribe to get alerts of latest posts or follow me on Facebook.