The Magic of Austerity: Transforming Your Relationship with Money
When I hear the word "austerity," I immediately think of the government tightening its belts or corporations being more frugal with their spending. It may sound harsh or extreme, but as I have discovered, austerity can also be fun and even magical.
Webster’s dictionary defines austerity as “sternness or severity of manner or attitude.”
About three weeks ago, I found myself bored and disinterested in the books and podcasts I had been enjoying for the past few months. I craved something different but wasn’t sure what I was looking for. I scrolled through my podcast list—nothing but the same old options. Then, I went through my Audible history, and way back, I rediscovered the author Genevieve Davis. Genevieve’s books are all about manifesting and transforming one’s life. Her personal story of going from rags to riches is inspiring, and I find her voice and attitude captivating. Most of her book titles contain the word "magic": Becoming Magic, Doing Magic, Advanced Magic, and Becoming Rich. They were all right there in my Audible library, but I hadn’t listened to them in years. The title I chose to listen to that day was Becoming Rich.
The title is exciting, and if you follow the advice inside, you can improve your relationship with money and, in turn, attract more money to you, leading you to become rich. Whether you’re just getting by or doing well for yourself, her suggestions can enhance almost anyone’s relationship with money and increase their wealth. The process she walks the reader through is different, though at first, it can feel like plain old budgeting. I know this process works because I’ve implemented it in the past with great success. Yet, for some reason, I stopped doing it.
Inspired by the title, her voice, and her attitude, I decided to get back on that horse, adopt some sternness in how I handle my money, and experience some magic.
Genevieve’s formula assumes that you already have a general checking account. Then, you are instructed to create four more accounts. In my thinking, these can be online accounts, envelopes, or even mason jars.
The Accounts:
Big Purchases: Something you want to save for.
Fun and Frivolous: All about you—spent on things that make you feel rich.
For Others: A person, cause, or charity.
Your Choice: What else is important to you? A college fund, credit card debt, emergency bills, etc.
The formula works whether you’re barely getting by or making a good living. Start where you are and with what you can manage. If you’re barely getting by, start by putting 1% of each paycheck into each account (a total of 4%). The rest goes into general bills and living expenses. This 1% rule also applies to any other money that comes to you. If a surprise refund check arrives in the mail, it goes into the different accounts.
For example, if you make $15 an hour and work 35 hours a week, when you get paid, you put $4.46 (1%), allowing for taxes, into each of the four accounts. The remaining amount goes to your living expenses account. If you keep this up, at the end of the year, just in one account, you would have $232.05. For someone barely getting by, this would be a significant accomplishment and possibly something they’ve never experienced before—enough for a mini-vacation.
If you can afford it, increase the amount to 10%. For each paycheck and every sum of money that comes to you, do the same—10% into each account, envelope, or mason jar, with the rest going to rent, bills, and your spending account.
This might feel tough if you’re barely getting by because you “need” that money. But maybe you go without Hulu or Netflix for a year or another app or expense you can live without. At the end of the year, it will have been worth it. You are accomplishing something you may never have before and doing something amazing for yourself.
When I explained this to my mother, what she heard was “budgeting.” But this is about so much more than just the amounts we’re putting into the buckets. This is about how this process makes you feel and about improving your personal relationship with money. It’s a system through which you filter every sum of money that comes into your life, without wavering. When you receive an unexpected check in the mail—and they will start showing up once you implement the system—you don’t rush off to pay off credit card debt or buy that new jacket you’ve been wanting. You use the system: 10% in each account, and the rest for bills or to pay off some credit card debt if you wish. The categories come first. As you watch them grow and honor the system, your relationship with money will start to change. This will be fun, and your relationship with money will no longer be haphazard.
For me, the categories are 1) for Zoe (my granddaughter), 2) for me (shopping), 3) long-term savings, and 4) big purchases like vacations or home improvement.
To take this “austerity” thing even further, I decided to do a financial audit of sorts. I looked at my bank account and the monthly subscriptions to ensure everything felt right. The monthly $19.95 for a breathwork app was because I was killing myself trying to relieve my anxiety, which I’m healing with cacao—time to unsubscribe. My ButcherBox subscription, while it seems necessary and maybe cost-effective, can be replaced by shopping at the store weekly for our meals. After trimming my monthly subscriptions, only two remained—two that I use every single day: an astrology app and a human design app.
And then there’s Amazon. Although I was trying to shop consciously, all too often I would just jump on, put several things in my cart and hit “place your order.” The money wasn’t coming out of a preset category; I was just spending unconsciously, maybe even carelessly. Amazon payments are now connected to my “fun” account. Ending my ButcherBox subscription and cutting back on Amazon purchases reduces packaging waste, so as a bonus, I’m doing something good for the planet!
Can you see that this doesn’t mean you never get to spend money? You spend what you’ve put into the category for the things it was intended for. Save enough in that vacation account, and you can book the vacation. Fancy cake for Zoe’s 2nd birthday. Got it covered. Just be sure not to steal from one category to pay for another. It’s about austerity, and it takes commitment. Trust that it’s worth it.
What we’re doing is cultivating our relationship with money.
Have you ever thought about how you feel about money? Some people love and respect money, and it wants to hang around with them. But what if you were dating money? Would you tell it you loved it, then hate it the next week? Cuss at it for never being there when you need it? If you were totally reckless with it—"Oh, I can spend that; I’ll just not have any money until I get paid next week"—money would feel worthless and unappreciated in your presence, so why would it choose to hang out with you? Imagine if it felt loved and appreciated by you. This system can get you there.
Changing your relationship with money doesn’t happen overnight. Genevieve’s system gives you a framework to help you save money and a lens through which to filter each expenditure. Last week, there was a cute blazer in the TikTok shop. I clicked and was ready to buy it, then I remembered I had just put $100 in the spending account. Did I want to spend $22 of that on the cute jacket? I paused to consider and looked harder. The jacket was for spring, so that didn’t make much sense. Maybe a fall or winter one. I was conscious of my spending.
It may seem hokey or “woo-woo,” but as we improve our relationship with money, more of it will come and want to hang out with us. And just like all Ms. Davis’s other books, this one is about magic. Within days of creating my categories and making deposits into the accounts, money started to show up. I do payroll for our companies and discovered I had been making an unnecessary payroll deduction in the amount of $330 a month. (Shame on me, I know.) Since I had the Becoming Rich system in place, I didn’t think, “Oh, I have $330 extra to spend a month.” Immediately, I used the system and increased the amount that automatically goes into each account bi-weekly. Then on Monday, I got an email from my bank with an offer to reduce my monthly fees from $16 to $7—there’s another $9. I always find change in the streets, but in the last few weeks, the amounts have doubled. Once I started showing money more love, it started wanting to spend more time with me.
On the flip side, there may be challenges. For instance, my husband and I went to Sam’s Club yesterday, where he usually pays. He didn’t have his debit card with him, so I paid instead. Although it was an unexpected expense, it was still covered by my spending account. What I didn’t do was start worrying about being behind or losing money. Everything was covered.
This is a simple system, and when used correctly and consistently, it can change your relationship with money. This shift creates the feelings, and in turn, the magic, that will attract more money to you—and it can make you rich.
I love hearing how these posts resonate with people. Please share your own stories or techniques in the comments below, or feel free to message me.