Coping with Frugal Burnout

For the past couple of weeks, the question I’ve received the most often is, “How do you cope with frugal burnout?” There are two aspects to this: one, after practicing frugal behavior for a period of time, it can old; and two, many people are now settling in to a different financial reality than they perceived a couple of years ago.  Instead of seeing a period of frugality as temporary, most people are realizing that the job market, although improving, still remains lackluster; and cost increases, like food, energy, and health insurance continue to outpace income gains.  In addition, the reality of the burst housing bubble has permeated throughout various sectors.  Although I have written about frugal burnout often, my previous post was primarily focused on short-term pick-me-ups (like a small indulgence) to boost your spirits.  I think that the current question is more along the lines of adjusting to a longer-term frugal picture.  Here are some thoughts:

–Take a realistic snapshot of your financial situation — including the progress you’ve made, debts outstanding and your current budget. If  you have a very austere budget to shave down debt, would having a bit of breathing room make it more tolerable?

–Re-examine your goals, particularly your long-term ones — coping with current circumstances is often helpful.  Are you saving toward long-term goals like paying off your student loans, saving for a down payment, or a big trip.  Reminding yourself of these goals can help to keep things on track.

–See if there are opportunities for extra income – a former boss of mine used to say, you can’t save your way to prosperity (without earning).  If your budget is already bare bones, it may be more fruitful to seek additional income opportunities.

–If these don’t work, try a few tricks to stay motivated – these include a small fun money account and a moratorium on looking at financial statements.  Also, keep in mind that many other households are going through the same financial circumstances.

shared at this week’s Carnival of Personal Finance