How I Stopped My Raises From Disappearing Into Thin Air

Write down every expense for a month to see exactly where your money goes and identify inflation triggers.

1. 1
   Choose a tracking method — Use a simple app like Mint or YNAB, or a spreadsheet. I used a Google Sheet with columns for date, amount, category, and need vs want.
2. 2
   Log every purchase, no matter how small — That $4 coffee? Log it. The $12 Uber? Log it. Cash transactions too. Do it immediately or you'll forget. I set a phone reminder for 8 PM.
3. 3
   Review and categorize at the end of the month — Add up categories. I was shocked that my 'little treats' (coffee, snacks, apps) totaled $340. That's $4,080 a year. Pick one category to cut by 50% next month.

Wait 48 hours before buying anything over $50 that isn't a necessity to reduce impulse spending.

1. 1
   Set a threshold that fits your income — For most people, $50 is a good threshold. If you earn less, make it $20. If you earn more, $100. The point is to pause.
2. 2
   Use a 'cooling off' list on your phone — Create a note titled 'Want to Buy' and add items with price and date. After 48 hours, review it. I've found I delete 70% of items after the wait.
3. 3
   Implement a one-in-one-out rule for upgrades — If you want a new phone, you must sell the old one first. If you want a new jacket, donate one. This stops accumulation and forces you to value each purchase.

Withdraw cash for categories like dining, entertainment, and groceries, and stop spending when the cash is gone.

1. 1
   Identify 3-4 variable spending categories — Pick categories where you tend to overspend: eating out, entertainment, clothes, or hobbies. For me, it was restaurants and Uber Eats.
2. 2
   Withdraw cash and label envelopes — Each payday, withdraw your budgeted amount for each category and put it in a labeled envelope. For example, $200 for dining out. When the envelope is empty, no more restaurant meals.
3. 3
   Track what you spend compared to your budget — At the end of the month, see if you stayed within the cash. If you have leftover, roll it into next month or put it in savings. If you ran out, you know you need to adjust the budget or cut back.

Find free or low-cost ways to reward yourself for achievements instead of defaulting to expensive treats.

1. 1
   Make a list of non-financial rewards — Write down 10 things that make you happy and cost little or nothing: a hike, a movie night at home, a bubble bath, a board game with friends. I have a list on my fridge.
2. 2
   Create a 'celebration jar' for small wins — Every time you hit a savings goal or avoid an impulse buy, write it on a slip of paper and put it in a jar. At the end of the year, read them. It's a free dopamine hit.
3. 3
   Schedule a quarterly 'financial date' — Every three months, review your net worth and savings rate. Celebrate progress with a fancy coffee (not a dinner out). Seeing the numbers grow becomes its own reward.