A coworker of mine were talking about our ideas for new year resolutions and showed me a YouTube short that was explaining this method. I cannot find the video for the life of me, but to sum it up you find your average spending for your non-essential variable expenses and then reduce the overall spending by 1% or more each month.
I think it is a good idea just to know that number in the first place and then it really helps to actually make a plan on how you are going to try and reduce spending in that area by X% is a better plan than not having one at all.
I am willing to give it a shot and see how it goes.
Has anyone heard of the "1% Less Method"?
byu/Remarkable-Ad3835 inFrugal
Posted by Remarkable-Ad3835
2 Comments
I mean that’s great but 1% is such a small number. It seems like it’s easy to justify it standing around talking about it, but it’s always going to be the next expense that you skip.
Unless you set an actual budget for your variable expenses and then stick to it hardcore and then reduce that number by 1% or 2% or 3%, I don’t see how anything can change.
I think that is a neat idea, very approachable and fairly sustainable, just as advice for you when you go to try this I would recommend you get your average for categories based off of like 3-4 months of data, it usually doesn’t need to be 6+ month but it doesn’t work very well if you just use your previous month just because you could have easily had a light or heavy month just lining up when you do grocery shopping or special one off purchases.