The $20 Money Diet

My wallet, checkbook, and debit card have all gone on a diet. It's like a low carb diet, except it's a low dollar diet. Anything that costs twenty dollars or more isn't on my diet plan. Coincidentally, many items cost $19.95 which is too close to my dietary limit. It's the perfect spending limit; anything that qualifies as a wise purchase and costs less than twenty dollars is allowed. It's only those things that cost $20 or more that have to wait.

Obvious Exceptions

Obviously, paying our household bills doesn't fall into the diet plan. Think of bill paying like going to a party; you're allowed to go out and eat whatever you want for one night but you're back to your diet the next day.

There are necessary reasons to spend more than $20: filling the gas tank, paying the monthly bills, filling prescriptions, visiting the doctor. However, there are small purchases that should stay under this number. The total bill might be more than $20 (who's going to spend less than that on groceries?) but the individual items should stay below this number.

5x20=100

Why twenty dollars? It's a magic number for spending: MAC machines dispense twenty dollar bills, TV commercials focus on the number, and 5x20 equals $100. In all likelihood, a trip to the department store could total $100 with only five items in hand. A few spontaneous purchases at the bulk shopping warehouse (Costco, Sam's Club, BJ's Wholesale) could add a substantial number to the total bill. Twenty is a perfect limit.

Even Larger Purchases

Even twenty dollars doesn't interfere with larger shopping trips, but it does keep them in check. A trip to the grocery store won't break the $20 diet. A roast, a chicken, or a bulk pack of hamburger won't break the $20 limit; if it does, the menu needs to be revamped.

If a night out is essential (a birthday treat, the boss is in town, a date) the number still works if it applies to individual items. Choose a restaurant that offers total meals less than $20. If the steak platter costs $22.50, then choose the pork chops instead. Don't forget to factor in the tip and the drinks. Maybe splurging on the lobster ravioli is forgivable if you order water rather than wine with your meal.

Keeping In Check

The twenty dollar limit keeps spending in check. Make the rule that unless it's a special occasion like mentioned above, going out shouldn't total $20 or more. For the individual, this means that a night at the movies could be possible. However, for the family that trip is out of the question. This sliding rule seems appropriate since a family trip to the movies could prove to be quite expensive and most likely budget breaking.

Knowing that as a family you can't spend more than $20, you'll find yourself eating at home more often. Those drive-thru restaurants have trouble feeding a family of four for less than that. The movies and other expensive trips are out of the diet plan, too. Instead, you'll quickly find yourself eating and playing at home, somewhere that offers so much more than a cheaper tab.