A couple of months ago, I was thinking about how similar eating and spending are. Although I planned my spending, I wasn’t planning what I ate, and I realized that was silly because I already knew how. So, I decided to apply budget my eating. Before doing this, I thought that I was healthy. I started trying out different apps to track my eating. As I tracked, I realized that I didn’t eat as healthy as I thought that I did. A lot of little things, like mayo and snacks, added up. Last week I put on some jean shorts, which I hadn’t worn for a year. A year ago these were very comfortable, but this year they fit very tight! One of my friends called these my “gauge jeans.” As soon as I put them on, I knew I had gotten bigger over the last year.
The same principles of physical health apply to financial health. We have to have a gauge that lets us know when we are keeping within our budget. We can think we are doing fine but unless we are really tracking it and gauging it, we won’t know until we incur overdraft fees, denied debit cards, or other negative consequences.
Can you imagine driving your car without a fuel gauge and trusting your general feelings that you are fine since you filled up the tank recently? That may work for a while, but eventually you would probably run out of gas. I like to keep the gas tank in my car half full, but the other day I looked down and it was almost to the E! If I hadn’t had my gauge, I probably would have thought that there was plenty of gas, but we had driven more than usual, and we hadn’t filled up the tank.
When Ty and I first started budgeting, we didn’t gauge our spending, and every month we overspent. I only reviewed our spending at the end of the month. After a few months of doing this, I realized that we needed to have a spending gauge — like our car’s fuel gauge. I needed to know how much I had left in my groceries and repairs budget. Although I could still overspend, I would be aware that I was overspending. Our car still run out of gas even with a fuel gauge, but the gauge makes you aware of what will happen. On holidays and vacations, I know I’m going to spend more than usual because I have tracked it, so I have to allow myself more calories and more money during those times. Tomorrow, being the Fourth of July, will be one of those times. I can allow more and still use my gauge.
Noom Coach, which is the app I’ve been using for tracking my eating, works well for me personally because I can relate to it. It even calls my eating plan a “budget” and it has a gauge built in gauge. The other day it told me, “1576 calories left in budget.” I’m not a nutrition expert, but I do know enough to know that nutrition is more complicated that just calories. I'm just simplifying the analogy in order to illustrate my point. Tracking and gauging my spending and my eating make me so much more mindful than when I don’t track and gauge them. If I consistently overeat, my pants are going to get tighter and tighter until they don’t fit anymore. If I consistently overspend, my debt will increase and money will become tight.
It’s easy to say, “I’m frugal.” It’s a general statement and anyone can say they are frugal because they can easily compare themselves to others who spend a lot more that they do, but as you track and gauge your spending you may find you are overspending. A lot of small purchases can really add up.
I struggle with self-discipline, so a gauge helps me realize what’s going on. Gauging can’t force me to stop spending or stop eating, but it lets me know what I am spending and helps me to be more mindful of what I’m doing. If I’m wise, I won’t go past the “empty” mark on our gauge, because doing so will make me run out of money and be forced to call for help or refuel (earn more).
There is no magical app that can force you to be financially fit, but apps can be so useful. I love to try out new financial apps! What’s your favorite app for managing your finances? If I haven’t tried it, I will.
Did you know that Wasatch Peaks Provides access to the Peaks Money Manager app? I’ve been trying it out. Here are a few things that it helps me do.
- Keep track of all my accounts. I can put all your financial accounts into this so that I have a picture of your financial situation. Simplifying your finances helps to understand them.
- Track net worth. Tracking networth motivates me. When I don’t feel I’m making progress, I can look at my net worth and realize that I have paid down debt and increased my net worth.
- Set goals. Again, it’s nice that everything can be in one spot.
- Budget. The Money Manager program tracks my spending. I can then use that information to set up your monthly budget.
- Alerts. Peaks Money Manager sends alerts when you are running out of money in a category. This is a spending gauge. This is especially helpful if you pay for almost everything electronically.
Do you gauge your spending? If so, how?