We're into week one of the $30 challenge and I'm beginning to realise that my wallet is like a sieve - money comes in and goes out rapidly. I've been keeping a tight lid on the spending so far and I think I'm doing pretty well, but I'm kicking myelf that I picked the week before Christmas to start this whole process. This is when money traditionally leaks dramatically and everyone wakes up the week after New Year with a debt and a hangover to boot. So I'm finding this week a challenge to say the least (and I think I cheated slightly).

How did I cheat, you ask?
Well, I thought about starting the challenge last week and I baulked at the thought. I did all my Christmas shopping last week - not that I had a lot to do, but it adds up - and while I tried to pay cash for most of it, $70 went onto the credit card. I figured that it didn't count because it was last week and the challenge was only starting this week, but I checked my account last night and the amount only got debited this week. So technically I'm $70 over my challenge, but I'm not counting it exactly.

I sold a couple of things on ebay this week too and I've used it to pay towards the credit card debt. I have about $100 left over which I could pay to the credit card too, but I might stick in my ING account to get me some interest until next month. Or it might be a little extra cash towards New Years - I think we're going to The Point, which has a dinner and drinks extravaganza for $130. It seems steep, but considering it's dinner and all drinks, it's not too bad. I'll have to watch the cash all next week to be able to afford it within the challenge perimeters - I have $210 to play with for the week, so I'd have to spend $80 for the rest of the week to afford it. This may not happen, as I'm getting my nails done during the week for $45. It's my one luxury at the moment and I'm loathe to lose it.

My 8 week challenge:

Excluding regular expenses such as rent and other bills, I am challenging myself to spend $30 or less a day for the next 8 weeks, starting tomorrow (Sunday 17 December 2006).

The rules:

1. All expenses must be tracked
2. Money remaining at the end of each day is carried over to the next day
3. The same follows for money remaining at the end of each week.
4. Credit card use counts against the challenge - the aim is to avoid all credit usage if possible
5. I haven't decided what happens to any extra money I earn during this time - should it count towards the challenge money or should it go straight to savings/paying off my debt?
   

What do I gain?

1. I'll pay off my credit cards completely
2. I'll have more of an understanding of where my money goes
3. I'll be able to add to my savings

Looking at my current spending, too much of my money goes out too quickly - on stupid stuff that I don't need or use and I need to be stricter in general, so here are some basic rules:

1. Buy one magazine per month
2. No books - borrow from the library!!
3. Keep a grocery list and stick to it
4. Use all beauty products I currently own before buying anything new
5. Sleep on the idea of buying clothes - if I really want it, I can get it the next day

So here goes. Feel free to chip in with any other tips and tricks.