This doubles as a world class method to attract horrible domestic issues.
Why it never works:
First, you’re assuming the trusted family member is some kind of higher being, with greater self-discipline. That may not prove true. Some people can act as checks and balances, but some others are encouragers – they will “okay” your spending, and make it worse (now you have external approval to spend as well).
Second, it puts a lot of pressure on the person in charge. No one likes to keep being the one who says “no”, especially to other family members. After disputes galore, the one in charge will typically give up.
What to do instead:
Similar to point 1. If you must assign responsibility to someone else, assign responsibility over one or two specific things. For example, have your spouse in charge of controlling the MasterCard expenses, while you control the Visa expenses. Or you control grocery related costs, while your spouse controls the vacation budget.
4. Save on many small amounts, instead of a few big costs
This is when you attempt to budget by cutting many tiny costs, like 50 cents off your Mee Pok (walk two blocks to get the cheaper one!) and buying plain cereal instead of Fruit Loops.
It wasn’t easy in Primary school, and it won’t be easier now.
Why it never works:
The ego depletion we mentioned in point 1 is at play. Because you are expending valuable willpower to restrain yourself in hundreds of small decisions, you are quickly worn down.
Furthermore, you will lose motivation because the rewards are not commensurate. You will find that you are skipping cabs on rainy days, eating food you really don’t like, staying cooped up at home all weekend, and saving maybe $40 a month for all that suffering.
What to do instead:
Always start by identifying major costs, and finding ways to cut down on those first. Examples would be refinancing your personal loans, finding a more cost-effective insurance plan with lower premiums, or selling off the car.
Eliminate the big costs that really matter. We know it’s easier to save on little things, like buying kai lan from the local grocer instead of the supermarket; but those little efforts wear you out and won’t change your life.
This article was republished with permission from The Fifth Person.