A Collection of Resources Related to Your Spending Habits
When it comes to spending, it’s not so much the big-ticket items that throw off your budget —it’s the little things that add up.
Here’s my reasoning.
The majority of people make big purchases once in a while. When they make those purchases, they need to arrange financing; for example, a new vehicle, home, renovation, college, etc.
It’s the small daily purchases we don’t plan for or really think about that make a difference. You do a little shopping, you see a couple of things — oh I’ll pick up that magazine. Oh yeah, they have these shoes on sale. Let me pick up this new phone cable — I like the color, and it’s only a few bucks. What are a few bucks, right?
You walk out of the store, and you have just spent a quarter of the monthly car payment.
Make this little shopping trip once a week, and you have spent the car payment — and what do you have to show for it? Probably nothing.
I find spending on the small stuff is where a lot of your monthly expenses go because there is no budget for the small spending. That’s why sometimes you wonder where all the money went at the end of the month.
Another important point is you don’t put any thought into small purchases — it’s only a few bucks.
Well, my friend, you can do a simple exercise that can change your finances.
Make a list of every purchase you make that’s not in the budget, and at the end of the month add it up.
This will be an eye-opener.
Either you’ll give yourself a pat on the back for managing your money well, or you’ll give yourself a slap in the face as a wake-up call.
Your list will contain anything you buy you don’t have in your budget.