In times of uncertainty, many of us have a tendency to look back at the “good ‘ole days” and wish we could return to better times. As we watch the volatility in the stock market, the real estate market, the price of gasoline and continuing inflation at the stores, we often wish we could live as well on less. If we truly want to feel like we are living large on whatever we currently bring in, the following ideas can help us wisely use the money we have while still being able to achieve our dreams.

1. Identify a need versus a want: I need food, water, clothing, housing, a car to get to work. I want to eat at the best restaurants, to have multiple outfits for every season and every reason, to live in a mansion, and to drive the latest model …all without having to go to work! Once I’ve identified what I need, then I can more easily determine if what I want will fit into my budget.
2. Analyze your spending: Track your spending for the past three months. Ask yourself which dollars satisfied a need; which dollars satisfied a want, and which expenditures might not have satisfied either. When I am bored, I tend to want new things. If I can identify that I am bored, not that I need something new, then I can maybe pick up a good book or go to the garden and distract myself from the feeling of the need to spend.
3. Make up a written budget: For most people the idea of making a budget is stifling. Change your thinking to realize it really is a spending plan. David Ramsey, author of “The Total Money Makeover” says that listeners to his national call-in radio show tell him that once they’ve written a budget they feel like they’ve gotten a raise. The reason: managed money works harder. And, if you have planned for it, you can spend it!
4. Pay yourself first: Think of how well off you would be if you could save 10% of your income for long-term goals, 10% of your income for shorter term goals, give 10% to charity and live on 70% of your income. While those percentages may be a bit steep for where you are, you can automatically transfer part of each paycheck to a retirement account before you get your take-home pay. For retirement save at least the equivalent of an hour a day of your income each week. And for an emergency fund, consider a salary contribution equal to 30 minutes a day each week as a good start. And when you receive raises or extra money, consider how to make it work hardest—whether dealing with a need or a want.
5. Pay in cash: Whenever possible, pay in cash. When I spend cash, it hurts. This makes me aware of whether I am spending on something I need, or on something I haven’t planned. Ramsey recalls a study several years ago that showed when shoppers spend cash, they spend 12% to 18% less than when they spend with plastic because of the emotional pain.
6. Exercise restraint: Call upon your will- power when it comes to spending. Do I really need this item? Is it in my spending plan?
7. Dream for the future: Do you want to take that dream vacation? Do you want to get the education you never had time for before? Do you want to retire and travel, spend time with your family or spend some time in a foreign land as a missionary? Incorporate your dreams into the reason you are exercising restraint now and it will make it easier not to spend outside of your plan.
8. Count you r blessings: As I focus on what I have instead of what I don’t have, I invariably and grateful that I have much more than I could have ever asked or thought. Recognizing this fact, helps me to concentrate my spending on what I truly need rather than give into the wants I don’t need. Often times, I find there is something left over to fill a need for someone else. This then becomes a blessing for me.

I only get to walk once through this world. As I incorporate these ideas into my daily living, I find that I have more than I thought I did. Incorporate an idea a month and really stick to the plan. At the end of a the year, you should realize more than you thought possible and find that you really are living well while spending less!