Attempting self imposed $500 annual discretionary spending challenge

[jnw]

So I've decided for the 365 day period of Feb 15, 2023 to Feb 15, 2024, I am going to attempt to spend no more than $500 in discretionary spending for the entire year. I am going to aim for $0 but will be happy if no more than $500. (I already completed a 365 day $0 discretionary food spend -- dining, fast food, coffeehouses, convenience store food -- but my overall discretionary spending was around $1800 for the year.)

Here is the breakdown of my current discretionary category in my gnucash accounts tree:

My discretionary expenditures include the following subcategories:
Clothing (discretionary as opposed to non-discretionary clothing)
Coffeehouses
Convenience Store Food
Dining
Fast Food
Gifts
Hair, Salons & Spas
"Health" (does it really help or is it just a waste of money.. questionable items here)
Hobbies
Home Upgrades
Landscaping
Movies & TV Shows (cinema, movie rentals, streaming subscriptions)
Museums & Zoos
Music & Concerts
Outdoor Recreation & Parks
Performing Arts
Political Contributions
Subscriptions (all other discretionary subs)
Travel

Note: I do have non-discretionary categories for clothing and subscriptions as well. The non-discretionary subs include VPN, Google Drive and $10 per month to a friend's Patreon. (It's arguable that the patreon gift of $10 per month is discretionary, I agree, but I decided I wouldn't stop this gift no matter what so I just made it non-discretionary -- it's the only monthly transaction of this sort for me.)

I'll report back every few months to share how I'm doing. Yeah I know this will seem radical to many, but we are really content with our existing possessions and are home bodies; and hadn't already planned on doing any traveling this coming year so I should be able to do it EDIT: We do enjoy taking our dog to the free parks as well.

[AnnetteLouisan]

What is non discretionary clothing?

[jnw]

What is non discretionary clothing?

Clothing which is necessary. Can't go running around naked in public

For some though this might mean business attire as well, but I don't work so I don't have to worry about that. I mostly where white sneakers, jeans and a few tops. I have a pair of dress shoes and sandals but don't wear them often since we dont' go out a lot; so they last a long time.

[Rocky Mtn Man]

There are many people who spend zero money in those human enrichment categories.

They are in prison.

[jnw]

There are many people who spend zero money in those human enrichment categories.
They are in prison.

Well I'm having the time of my life and not imprisoned Most of the joys of life can be had for free Or low one time costs.

I cook fine meals for us, garden out back, have two big 4k tv's, an audiophile stereo system (which we DIY'd for a couple hundreds bucks per component), a nice washer, dryer, dishwashing machine, stove; a few nice bbq pits out back. A two car garage, a lovely shed. An awesome dog we play with. Tons of free entertainment on internet including youtube, free streaming, forums, etc..

[London]

Not sure how this is actionable for the forum. This is a blog post.

[jnw]

Not sure how this is actionable for the forum. This is a blog post.

This forum is "personal consumer issues". This is most definitely related to personal consumption. But if the moderator wants to delete it that's fine.

[whodidntante]

What is non discretionary clothing?

Clothing which is necessary. Can't go running around naked in public

For some though this might mean business attire as well, but I don't work so I don't have to worry about that. I mostly where white sneakers, jeans and a few tops. I have a pair of dress shoes and sandals but don't wear them often since we dont' go out a lot; so they last a long time.

Clothing is not optional at the majority of places I visit. So I guess if one didn't have any clothing, that would be a non-discretionary purchase. I've found that in most situations where there is a certain "fanciness" of dress required, one can limbo a few levels down from that bar and not get kicked out. However, it may create friction or at least awkwardness. I've also noticed that people treat me better when I look fancy. A Youtuber started wearing a suit everywhere he went because he liked the better treatment he got from others.

[jnw]

I personally think this thread is useful. Because someone might inquire how I accomplished not spending in a particular sub-category and I would explain how I did it, helping that person with a "personal consumer issue".

[TxFrog]

“Outdoor Recreation & Parks”:

I’d highly recommend not skimping on this category. How would this work in practice? If you get invited to go hiking at a State Park, would you decline to avoid the $10 or $15 entrance fee?

Unless you’re paying off a large amount of high interest debt, I would focus on limiting non discretionary consumables (e.g. fast food, consumer goods), not experiences.

[dukeblue219]

Doesn't sound like an enjoyable year to me unless you have no choice. What's the point of just saving money for the sake of having more? Life's too short.

[Johm221122]

I admire your aiming for what you want (savings). I'm currently power saving for a goal and doing very little discretionary spending.
I basically only spend on a few items that you would probably consider discretionary like my morning coffee. I simply try (I'm not perfect at this) to only spend discretionary money on things that brings me real happiness. Like my coffee, eating out with family occasionally or an occasional outing with friends. I try hard not to waist money on things I don't need or don't really enjoy but when I do I spend what I want

[jnw]

“Outdoor Recreation & Parks”:

I’d highly recommend not skimping on this category. How would this work in practice? If you get invited to go hiking at a State Park, would you decline to avoid the $10 or $15 entrance fee?

Unless you’re paying off a large amount of high interest debt, I would focus on limiting non discretionary consumables (e.g. fast food, consumer goods), not experiences.

Well I am aiming for no more than $500 per year, so I would take that $15 entrance fee from the $500. I'd like it my discretionary spending to be $0 for the year, but stuff can happen like this. I also will probably take my BF out to fancy $50 per plate dinner on his birthday and that will be $125 there. So most likely it won't be $0 but maybe he'll be happy with ribeye for breakfast and dinner on his birthday, with some candles here at home on the table. I do cook food well and have some nice cookware here.

[jnw]

Doesn't sound like an enjoyable year to me unless you have no choice. What's the point of just saving money for the sake of having more? Life's too short.

I started too late. I used to live paycheck to paycheck, until 5 years ago. I really want to get this home paid off and have around $500k in retirement over the next 15 years. We'll draw on it later at no more than 4% and travel a couple times per year etc.. when he's no longer working.

My net worth is only like $86k right now.

I should have this home paid off within a couple years. I want at least a $50k emergency fund after that.. then we might travel once per year after we accomplish that. So maybe in about 5 or 6 years.

[MrBobcat]

There are many people who spend zero money in those human enrichment categories.
They are in prison.

Well I'm having the time of my life and not imprisoned Most of the joys of life can be had for free Or low one time costs.

I cook fine meals for us, garden out back, have two big 4k tv's, an audiophile stereo system (which we DIY'd for a couple hundreds bucks per component), a nice washer, dryer, dishwashing machine, stove; a few nice bbq pits out back. A two car garage, a lovely shed. An awesome dog we play with. Tons of free entertainment on internet including youtube, free streaming, forums, etc..

Many discretionary spending items are one time costs, so after you have everything you really want it gets easier to cut back on spending.

[livesoft]

I applaud the OP for publicizing what they intend to do. Putting it out there makes it more likely that they will attempt it. Good luck!

As an aside, I have a National Parks Lifetime Pass, but I would spend more than $500 a year buying gasoline for my car to get to use the pass.

[jnw]

I applaud the OP for publicizing what they intend to do. Putting it out there makes it more likely that they will attempt it. Good luck!

As an aside, I have a National Parks Lifetime Pass, but I would spend more than $500 a year buying gasoline for my car to get to use the pass.

I also happen to have a lifetime pass come to think of it. Thanks for reminding me

[jnw]

I admire your aiming for what you want (savings). I'm currently power saving for a goal and doing very little discretionary spending.
I basically only spend on a few items that you would probably consider discretionary like my morning coffee. I simply try (I'm not perfect at this) to only spend discretionary money on things that brings me real happiness. Like my coffee, eating out with family occasionally or an occasional outing with friends. I try hard not to waist money on things I don't need or don't really enjoy but when I do I spend what I want

My coffee & tea is just under groceries, not discretionary It's food right? hehe. >.> But I switched from coffee to the 2 cent bags of great value black tea so it's only like $21 per person per year.

[staustin]

[Inappropriate comment removed. Moderator Pops1860]

i'll be curious to track your progress!

[JoMoney]

The only items on your "discretionary" list that would challenge me, and they're areas I don't want to be "challenged" on:
Gifts
Dining
... some gifts are just obligatory, and I don't want to be confined if I find something that would make a good gift for some I care about.
I eat most of my meals out, and do very little grocery other than my morning coffee and oatmeal... The monthly $ difference between my typical dining out meals and trying to buy groceries and prep meals at home is very trivial - I expect that would be very different if I was doing meals for more than myself.

I expect the clothes and hair situation could be very different for more feminine people. It's not even a "challenge" for me. I cycle through the same few clothes like it's a uniform, buying new isn't necessarily a yearly thing, and cut my own hair.

Drinking tap water versus buying bottled water could be a more reasonable concern in some areas vs. others....

[vxdx]

Maybe this works for you, but if it were me this would be a miserable time. Everyone needs to find a balance between gratification today and saving for the future, but money spent today on some things will be much more valuable than that money saved until you retire but can no longer do those things.

Travel, hobbies, outdoor recreation, and gifts all seem to fall into this category to me.

[Kenkat]

The dog called and wants to know if the dog treats fall into discretionary or non-discretionary. They felt badly about asking you directly because you are a very good owner overall.

[Normchad]

I think this is pretty cool, to be honest. Let us know how it goes.

It’s easy to say “yeah, but……” all over the place. That’s not helpful though.

I 100% think that everybody should be more intentional about how they spend their money. And more specifically, it should be measured, and this definitely does that.

Good on you!

[JoMoney]

...
Travel, hobbies, outdoor recreation, and gifts all seem to fall into this category to me.

Most of my hobbies and outdoor recreation don't cost $ ... and Travel, depending on the nature of it, is sometimes a reimbursable expense.

[Dottie57]

Maybe this works for you, but if it were me this would be a miserable time. Everyone needs to find a balance between gratification today and saving for the future, but money spent today on some things will be much more valuable than that money saved until you retire but can no longer do those things.

Travel, hobbies, outdoor recreation, and gifts all seem to fall into this category to me.

Thank you for a sensible answer.

[Rocky Mtn Man]

Maybe this works for you, but if it were me this would be a miserable time. Everyone needs to find a balance between gratification today and saving for the future, but money spent today on some things will be much more valuable than that money saved until you retire but can no longer do those things.

Travel, hobbies, outdoor recreation, and gifts all seem to fall into this category to me.

Agree. Good health is a given until one day it isn't for almost every person. Mobility problems, hearing loss, vision loss all correlate with age. Along with general energy levels.

[quantAndHold]

Maybe this works for you, but if it were me this would be a miserable time. Everyone needs to find a balance between gratification today and saving for the future, but money spent today on some things will be much more valuable than that money saved until you retire but can no longer do those things.

Travel, hobbies, outdoor recreation, and gifts all seem to fall into this category to me.

Thank you. I’ll probably meet OP’s $500 goal this year. Not out of choice, but because I am undergoing cancer treatment, and my discretionary world is very small right now. It is indeed miserable. I don’t regret a penny of my discretionary spending over the past few years, and I can’t imagine why someone would inflict this on themselves unless they didn’t have a choice.

I will spend about $800 on coffee beans, though. At least I can still enjoy that.

[HomeStretch]

Good luck and please update the thread with your results.

What is your 2023 projected total spending (including healthcare and income taxes) excluding discretionary spending (which is budgeted at $500 this year)?

It’s a bit hard to frame your $500 challenge without understanding your projected 2023 spend plus it was not initially apparent that some of your $0 spend for discretionary categories such as clothes had a non-discretionary counterpart with a 2023 projected spend.

[PeninsulaPerson]

I’ll probably meet OP’s $500 goal this year. Not out of choice, but because I am undergoing cancer treatment, and my discretionary world is very small right now. It is indeed miserable. I don’t regret a penny of my discretionary spending over the past few years, and I can’t imagine why someone would inflict this on themselves unless they didn’t have a choice.

Good luck to you, QuantAndHold. I enjoy your posts and am hoping your treatment goes very well. I also commend your common sense.

Good luck to the OP!

[sailaway]

I used to move some things out of discretionary and into mental health. Coffee shops and dance classes were the two big ones. Not sure the coffee shops actually helped, but the dance classes earned their place. Obviously, this could be a slippery slope, but so was my mental health at the time.

[jnw]

The dog called and wants to know if the dog treats fall into discretionary or non-discretionary. They felt badly about asking you directly because you are a very good owner overall.

We don't buy junky proce$$ed high carb dog treat$ for our dog. Our dog gets real food from our plates -- just like they've evolved on for centuries with their human masters; and since we eat a low carb diet, she gets mostly meat and cheese -- and for some reason this dog we have likes veggies too lol. It's all part of our grocery bill. I don't even have dry dog food separate. She's part of the family -- a little person That said, it's relatively cheap to feed her small scraps here and there, especially since we make everything from scratch and not proce$$ed.

And for dog toys, there is only ever one needed: two worn out socks tied together in a knot. Makes a perfect toy for fetching, chewing and tug of war. It doesn't cost a dime and my dog loves it. (My last dog did as well R.I.P.)

EDIT: I occasionally buy a pack of chicken hot dogs for $1 and cut them up into tiny bits for training. I don't exclude them from our non-discretionary grocery bill either.

Regarding groceries. We spend $588 per month between the two of us, along with the dog, the past 12 months. I am working on $400 per month now. So far we met that goal this month.. gonna make it a regular thing. This is including sundries which I lump in with groceries: soap, shampoo, cleaning products, tp etc..

[andypanda]

"Feb 15, 2023 to Feb 15, 2024"

I can't accept your challenge. I blew by $500 on 2/16 when I bought 2 Daiwa JDM (Japan domestic market) casting reels from JapanTackle for $700. I suppose $500 is a lot to some people and pocket change to others. Good luck with your challenge.

fwiw, I used to do a yearly budget back in the '70s and '80s. One year I bought storm windows. The next year I bought new hunting boots. I wasn't living check to check after making my monthly investments, but it was close. I was a Dominos mystery customer for 18 months and that free $7 large cheese pizza every month was a real treat.

[jnw]

"Feb 15, 2023 to Feb 15, 2024"

I can't accept your challenge. I blew by $500 on 2/16 when I bought 2 Daiwa JDM (Japan domestic market) casting reels from JapanTackle for $700. I suppose $500 is a lot to some people and pocket change to others. Good luck with your challenge.

fwiw, I used to do a yearly budget back in the '70s and '80s. One year I bought storm windows. The next year I bought new hunting boots. I wasn't living check to check after making my monthly investments, but it was close. I was a Dominos mystery customer for 18 months and that free $7 large cheese pizza every month was a real treat.

Yeah I realize $500 may be way too little for some. The challenge can be tailored to whatever set amount makes sense And some things which I consider discretionary might not be discretionary to another person, and vice versa.

[CorgiGoneCycling]

While this all seems rather arbitrary, I'll bite.

You do not work and you plan to spend less than $500 on hobbies and travel. So far you have mentioned gardening, cooking, free parks, and watching YouTube. What else do you plan to do with your time? Volunteering? Library books? What about exercise? Or is the aforementioned list all you need to live a fulfilling life?

Why are you not working? It sounds like you are not close to your financial goals.

[jnw]

My previous doggie enjoying the two tied socks as to -- was playing tug of war with her. She passed in October of 2022, of rare bone cancer at 8.5 years old.. way too young.. I miss her a lot.

[jnw]

While this all seems rather arbitrary, I'll bite.

You do not work and you plan to spend less than $500 on hobbies and travel. So far you have mentioned gardening, cooking, free parks, and watching YouTube. What else do you plan to do with your time? Volunteering? Library books? What about exercise? Or is the aforementioned list all you need to live a fulfilling life?

Why are you not working? It sounds like you are not close to your financial goals.

I think I added "etc." to the list you mentioned.. that means I didn't feel like typing paragraphs of enjoyable thing we do. There are many. I was just throwing out a few things which came to mind at that very moment of the 10 seconds it took to type it.

I am disabled and I get SSDI.

[sc9182]

Get Over-The-Air (OTA) TV + YouTube, Vimeo among other free tiers .. (on OTA - you are likely to get local-team NFL/sports games -- no guarantees.. likely NY market broadcast-rights are wonky ..)
Drink Tap-water (skip that oft touted RO system, or bottled-water -- chances are municipal water is just as good/better -- in most cases)
Get Starbucks coffee - YES, me saying it (get 50-cent Refills) -- do Tip Barista more-so especially upon Re-Fill !!
IIRC - Amazon still honors Family Sharing of Prime -- get Prime Video, some NFL games too ..
Get Solar and Get an EV; Free Electricity and energy for your driving needs too (tout your Financial and Environmental BH humble-brag). Now you can electrical-drier your clothes too -- no need for outdoor clothes-line .. (again, cold climate, City/Apt dwellers -- pardon this fun)

[muffins14]

Removed

[pizzy]

What is the point of this?

The tea thread must have slowed down.

[Broken Man 1999]

Maybe this works for you, but if it were me this would be a miserable time. Everyone needs to find a balance between gratification today and saving for the future, but money spent today on some things will be much more valuable than that money saved until you retire but can no longer do those things.

Travel, hobbies, outdoor recreation, and gifts all seem to fall into this category to me.

Same here! The list offered just eschews so many joyous things we do, individually, with each other, or as an extended family.

I would rather spend on things/activities I enjoy, not stack up dollars. DW and I stacked up our dollars years ago, and we will continue to spend them doing things we enjoy, along with some things/activities that cost virtually nothing.

Moderation in all things has served us well. We balance the $$$$ things with the $ things.

Broken Man 1999

[bradinsky]

She might well have a significant other that contributes to additional discretional spending.

[PeninsulaPerson]

Just saw that the OP is disabled and gets SSDI.

Sorry for your physical situation, OP, and for the early loss of your previous dog. (We also lost a pet to a rare early cancer.)

[pizzy]

What’s next? How many gallons of water we can save by not showering or flushing toilets?

[jnw]

Get Over-The-Air (OTA) TV + YouTube, Vimeo among other free tiers .. (on OTA - you are likely to get local-team NFL/sports games -- no guarantees.. likely NY market broadcast-rights are wonky ..)
Drink Tap-water (skip that oft touted RO system, or bottled-water -- chances are municipal water is just good/better -- in most cases)
Get Starbucks coffee - YES, me saying it (get 50-cent Refills) -- do Tip Barista more-so especially upon Re-Fill !!
IIRC - Amazon still honors Family Sharing of Prime -- get Prime Video, some NFL games too ..
Get Solar and Get an EV; Free Electricity and energy for your driving needs too (tout your Financial and Environmental BH humble-brag). Now you can electrical-drier your clothes too -- no need for outdoor clothes-line .. (again, cold climate, Apt-dwellers -- pardon this fun)

This is a great advice thank you.

We do have OTA antenna. I nice little one which my BF modified with a collection grid/screen behind it which really improved the signal. We get all locally broadcasted stations without issue. We bought a lifetime subscription to Plex (I think I paid $120); this gives us a guide for easily recording seasons of TV shows with DVR. We use a network dual channel ATSC tuner made by silicon dust. We have an 8TB HDD hooked up to a mac mini m1 (which is efficient and silent) which this records to along with holding a lot of movies. We stream from the Mac Mini M1 via plex to the Roku in the bedroom as well as the PC's, tablets etc.

The only liquid we drink is water besides the black tea. We built a diy berkey filtration system with 2 stock pots and we worked it out that it costs us about 2.5 cents per gallon if I recall for the filtered water, 1.5 cents of that being what the city charges us for the water.

We drink the 2 cent bags of great value black tea and are extremely happy with it (45 sec brew time with boiling water). So no starbucks here.

I rarely drive and have a $3000 toyota which has lasted me a decade and should last me another decade, we keep it in the garage; looks nice.. it's a Lexus LS400 actually.

We have been considering solar, especially if we can install it ourselves. I did the math and its a good deal But for now the money is in money market account.

[jnw]

What’s next? How many gallons of water we can save by not showering or flushing toilets?

We flush the toilet after each use -- thankfully it's only 1.4 gallons if I recall; our old one was 3 gallons. We also shower.

So no issues there.

[jnw]

Just saw that the OP is disabled and gets SSDI.

Sorry for your situation, OP, and for the early loss of your previous dog. (We also lost a pet to a rare early cancer.)

So Target might not be a good workplace for you but is there any work you can do?

Well I sold some stuff on ebay I'd buy at flea market. I can occasionally do that but I started to not feel very well and put it on hold. It's been on hold now a few years. Still hav about $1000 in inventory I could sell. I might start doing that again but maybe not as much.. Maybe $100-200 per month.

[jnw]

She might well have a significant other that contributes to additional discretional spending.

This is not the case. He is also frugal and content. He buys himself things here and there for himself just like I do at times. We buy each other a gift most years, for bdays and Christmas but not usually more than say $100 worth.

I actually buy him more gifts than he does me.

[WapelloHawk]

Back in 1989 when I was a brand-new second lieutenant, my new bride and I gave ourselves each $20 per week for discretionary spending. We still talk/joke about it. There was a $4.50 Friday night buffet we would go to - had crab legs. We thought we were kings.

I will say $20/week helped put us on a lifelong path of frugality. Eventually retired at age 47 and am now worried about spending and giving away enough to avoid estate taxes.

That being said, $0 for year doesn't sound enjoyable to me in the least bit. But, it is America and to each their own. I do quite admire your discipline. Not easy at all to stick to a tough personal challenge! Good luck!

[jnw]

Back in 1989 when I was a brand-new second lieutenant, my new bride and I gave ourselves each $20 per week for discretionary spending. We still talk/joke about it. There was a $4.50 Friday night buffet we would go to - had crab legs. We thought we were kings.

I will say $20/week helped put us on a lifelong path of frugality. Eventually retired at age 47 and am now worried about spending and giving away enough to avoid estate taxes.

That being said, $0 for year doesn't sound enjoyable to me in the least bit. But, it is America and to each their own. I do quite admire your discipline. Not easy at all to stick to a tough personal challenge! Good luck!

Love this story! I'll be gift giving more as well after I get my $500k saved up after 15 years.. drawing no more than 3% of it per year.

For the spend, I am gonna keep it under $500 so if I need to spend some I will. But going to attempt $0 if it doesn't inconvenience us. So anywhere between $0 and $500. I originally was gonna just do $500 but the idea of spending $0 on discretionary seems fun to me lol, like an accomplishment. It would really condition me not to spend. I did a $0 discretionary food spend last year and that helped a lot; saved a ton of money too.

[lazybones18]

What’s next? How many gallons of water we can save by not showering or flushing toilets?

I knew you a guy who worked with me that used to shower with a bucket underneath him
then use that water for his garden

I told him about my 10-15 minute showers and he got pissed