Passive Budgeting

You don't get rich by what you earn. You get rich by what you don't spend.
- Henry Ford

When you think of Henry Ford you think of his Model T, the first mass produced car. By using an assembly line he was able to produce a good product in less time and thus make it affordable for the masses. He further streamlined the process by offering “any color as long as it’s black”. What you may not know is he specified the dimensions for crates his mechanical parts were shipped to the factory in. So instead of cutting more wood for the floor boards, he just took apart the boxes and used them in the car.

A lady wrote to Dollar Stretcher describing how she tracks her non-spending on a white board in her living room. If she comes home and makes supper instead of buying take out, she calculates the difference and writes down what she saved that day. She should show some impressive results by year end.

One mom had her kids clip coupons and compare prices on goods on her shopping list. They were given the difference. You can bet they scrutinized the Sunday papers and kept the coupon box in order.

Granted, it’s easier to make a budget and spend up to it, than keep track of what’s not spent. But the second is more encouraging. So think about what you don’t spend. It may give you just the boost you need.