An interesting idea that I’ve been hearing about lately is that of the money-free day. Incorporating one into your year, month, week, or even more often may help you achieve your savings goals.
The idea behind a money-free day is to go a whole day without spending any money. The concept is simple, but the implementation is a little more complicated. You’re not trying to pre-pay or defer payments from that day to the day before or after but rather to eliminate spending from the day.
Obviously there are some basic expenses like food that we are all faced with on a recurring basis. For your money-free day, be sure to bring your lunch with you and prepare other meals at home. Doing so will still cost you money in the sense that you bought the food at the grocery store, but will prevent you from incurring a new expense. Also, try to forgo normal daily expenses such as your newspaper or latté for the day. Try riding your bike instead of using your car, when practical, etc.
You can start out having one money-free day. Then repeat the practice more and more frequently as you get more comfortable with the idea. If you can build up to once or twice a week, you could end up saving yourself a considerable amount of money. The more often you do it, the more creative you’ll become for your money-free day. You may get confident enough to take all of the money out of your wallet or purse before you start your day.
What to do with the money that you’re not spending on those days? You could pay down your debt or invest in a P2P loan portfolio from Lending Club. You’ll either be reducing the amount that is subject to high interest charges against you or increasing the amount subject to above average interest returns for you. That’s a real win-win!