Changing your spending habits is hard, or at least, it can be—especially if you feel like you’re having to give up all the spending comforts that make you happy, like buying mocha lattes, splurging on the latest Apple gadgetry, or pampering your pooch with special treats. This, you reason, is what makes life worth living. Luckily, there’s an alternative to blowing your budget or living a miserly, unfulfilled life. You can step down.

Don’t Eliminate Spending Altogether

Dr. Alena Johnson of Utah State University identified the step-down principle. You can think about it like this: the more expensive an item, the higher it is on the staircase. The less expensive an item, the lower it is on the staircase. Instead of the unacceptable dichotomy of either buying the most expensive version of an item or nothing at all, you can choose to step down.

For instance, Suzy wants the latest iPhone 3Gs, but $200 for a phone is not in her budget. Conversely, she’s not interested in a cheaper phone that AT&T offers; an LG Neon for $4.99 is really not ringing her bell either. Instead of going home angry and depressed, patting herself on the back for being a miser, she can step down – she can buy the $99 iPhone, which isn’t on the 3G network. She’ll sacrifice speed and memory size, but she’ll have more of the features that she wants. What’s better – no features, or mostly what you want?

You can apply the same theory to clothing. Instead of a higher-end store like Macy’s, you could take a step down to JC Penny’s. Take another step down and you hit an outlet mall, then another step: a consignment shop. This way, you can still be fashionable, just within your means. The idea is age old: you can have everything you want, just not at the same time.

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