Posted by Lending Club :: October 2, 2008 @ 11:47 am

Not spending money is harder than it sounds.

American consumers are increasingly cutting back during these tough economic times, which is a bummer since Sonic banana splits are only 99 cents.

But the reasoning makes sense. Keep as much money as you can until the stock market and the banks and the scores of other financial institutions settle down and experts can make heads or tails of where the economy is headed. Cut back on expenses, hold off on investments, and maybe even consider stuffing paychecks underneath mattresses for the time being.

The advice is good. The strategy is sound. The only problem is spending money hasn't ever been a weak suit of an American consumer. There are decades of evidence and thousands of Wal-Marts to support that claim. We have a hard time standing pat with our money. Some people like spending it; others like investing it. But no one likes to just stand there, hold it in their hands, and wait.

Fortunately, there are 4 ways to make the waiting period a little easier.

1. Budget for your future.

If you're being honest with yourself, budgeting is probably something that you should have done a long time ago. Well now, with your money not going anywhere for awhile, you have the perfect opportunity to plan out your spending future.

Start by setting aside a percentage every month to put into savings or investments. Then sit down and figure out all of the expenses that you plan to incur every month. Put everything from mortgage payment, utilities, and cell phone bills to groceries, entertainment, and Netflix on the list. When you're done with that, use the leftover income that remains (note: hopefully leftover income does remain) to plan vacations or big purchases or even donations.

Budgeting would be a good task during the hands-off money times because you will still get the chance to talk about your money and interact with your money and look forward to the time when you get to spend your money again. Yes, consumers can be that desperate.

2. Learn more about finance.

Now, don't take this bit of advice to mean academia and poring over books in a stuffy, university library. Although if that is the way you learn, then more power to you. What this advice is really about is simply researching and understanding financial terms and ideas you have always wanted to know more about. For me, it's the value of checking account interest.

While you can't spend or invest your money during this time, there are no rules against looking into different opportunities. Since you'll be sitting on your hands, you might as well take the time to learn more about money topics you have always been interested in but never had the chance to research.

For example, if real estate investment has always piqued your interest, the bumbling economy has provided an ample study hall for you to find out more. During the downturn, you can look into the specifics of real estate, discover how lucrative the opportunity would be, and prepare yourself to get in the game once the economy shroud is lifted.

If you use your time wisely while you're sitting around, you will have the advantage when everyone stands up again. Don't let the comfy recliner of cautiousness make you indifferent.

3. Make new friends.

The economy is not only tough on you. It is tough on everybody. And if misery does indeed love company, then finding fellow money martyrs shouldn't be that hard.

Even better, getting together with those who are struggling with similar issues can actually help you out in the long run. If you are a compulsive shoe shopper on a short leash and you meet a similarly compulsive shoe shopper on a similarly short leash, you will at least have someone to commiserate with.

Another great part to finding new friends during the downturn is that you can come up with some cheap ways to entertain yourselves. Rather than spending money on vacations or dinners or weekend getaways, spend the time at a neighbor's house or split the bill for a barbecue. There is strength in numbers, and there is also dispersal. A $100 children's bounce house is much more manageable when the 10 couples in your neighborhood chip in.

4. Distract yourself.

The best solution for not spending money might be to stop thinking about it altogether. Naturally, this is easier said than done, but if you're serious about keeping your money where it belongs, the extra effort is worth it.

• Spend time with family. Hopefully you are already doing this, but if not, the frugal days we live in should make family time even more appealing. Play a board game together (Monopoly might fix your investing jones), cook a meal together, or head out to the park for some good, cheap fun.
• Watch football. Really, sports of any kind will do the trick. Football season is in full swing, and there are games on virtually every night of the week. Following your favorite team or getting into a conference showdown can make all your money troubles disappear. Note: watching football and spending time with family may or may not be complementary.
• Volunteer. Not everything is about you. Give back to your community in other ways than just your wallet by volunteering with a local charity or non-profit group. The time spent helping others will be rewarding and affirming, and you'll hardly even remember that you haven't bought a video game for a month and a half.
• Spring cleaning: Get a head start on it. Box up your summer clothes and break out the fall attire. Get rid of toys and trinkets that have been sitting around forever and were never used. Spring cleaning doesn't have to happen only in the spring, and if we're honest with ourselves, it rarely happens then anyway.