Healthy spending series: Part 1 - Replace costly activities with free ones

Everyone has their ups and downs when it comes to spending money. Hell, I sure had mine! When I graduated from college in 2006, I had about $9,000 in credit card debt that had been a parasite on my bank account for years. On a card with a $5,000 balance, I remember making the $175 minimum payment each month, of which only $25 or so went toward the principal. I had a spending hangover that I'll never forget; one that I hope I never have to experience again.

Like an oversized person commits to lose weight, I committed to drop my debt once I got my first 'real' job. It took a few months of monitoring my finances, but in the end it was less painful than I imaged it would be-- and what a weight it was off my shoulders! Since dropping the debt, I've watched my net worth start to climb, bit by bit, as I gladly pay myself each month rather than Chase. Now that I'm a better place financially, I follow these guidelines as best as I can to make sure that the parasite of debt doesn't return.

1. Replace costly activities with some that are free
Let me first say that it's OK to go out and spend a little money; just like it's OK to eat a cheeseburger for dinner every once in a while -- I mean, we need to eat! But too much of a 'good thing' isn't a good thing for anyone. And overeating is just like overspending. Regardless of your financial situation, it's OK to overindulge now and then. But day-to-day, you should fill your life with healthy spending.

Consider why you shop. Do you do it because you're bored? I know I used to. Going to the mall or to a movie or to a coffee shop are all fine things to spend your time doing, but they could easily be replaced by things that are less expensive or even free. Set a goal for yourself to replace one of your regular costly activities with something that doesn't cost anything. The next time you're considering going to the movies, stay in and watch one you already own (I bet you own quite a few). The next time you're thinking of going shopping for a new cell phone, stay in and call your mother.

The big difference between overeating and overspending is that it's much easier to spot when you've been overeating...Imagine a planet where the more money you wasted, the fatter you'd get. I bet that with such obvious, negative symptoms, the citizens of that place would be much more financially responsible.

[ to be continued tomorrow..."2. Make a shopping list and stick to it ]