In these troubled economic times, are you cutting back on spending like I am? Whereas before I would buy fairly freely, now I am exercising restraint and thoughtfulness in spending.

I know more about time management than money management, but I have found that principles for the former can be applied to the latter. I'd like to share three:

1. Plan. In time management, “;planning”; means to think out beforehand how something is to be done. Applied to money, “;planning”; means to think out beforehand how money is to be spent.

In “;How to Spend Less & Enjoy It More,”; authors Dale and Sandy Larsen write that making the most efficient use of money for food shopping requires planning, because “;impulse buying is the death of your grocery budget.”;

Not only that, but from personal experience I've found that shopping without a plan can result in buying lots of items, but not the right ones to cook a decent meal. It's like the quandary of having a closet full of clothes and feeling you have nothing to wear.

2. Eliminate. In time management, I stress the need to eliminate time wasters. Applied to money, eliminate purchases you don't really need.

The authors, as an experiment, stopped buying paper towels. They realized there were so many rags around the house that could be used for the jobs paper towels used to do. They found they got along just fine without paper towels!

Their conclusion is that people may be buying things simply because they've always bought them and that with a little experimenting, they could find they aren't necessary at all. What have you been buying that you can do without?

3. Innovate. In time management, I encourage people to look for new and better ways to do things.

Applied to money, the Larsens give the following advice: “;Always, before you spend anything, look around for other options. Think about what you want. Now ask: What are some other possibilities of getting the same result for less money?

“;Go on an imaginative search for other possibilities,”; they say. “;Another store may have the same thing for less, or they may have a similar thing for even less, or somebody else may be getting rid of a slightly used one, or you may be able to make your own, or you may decide you don't need it after all ... Look for options in every area of your financial life, not just for items you purchase outright. Look for a different way of accomplishing the same objective.”;

Money, like time, is precious and limited. I encourage you to take time to plan how you're going to spend it, eliminate buying the unnecessary, and be innovative by searching out options. Doing so can help you live successfully on reduced resources. See you in two weeks!