No Money Left at the End of the Month?
There are three main ways that the majority of us overspend on a regular basis, maybe without even realising it.
- Little amounts here and there add up very quickly and over time can mean the difference between a significant decrease in overall wealth. A chocolate bar from the service station, the ‘too good to pass up’ special, grabbing an extra bottle of wine of two ‘since I’m already at the bottle-shop’, buying lunch each day at work. Test yourself by going for just one month without buying anything that isn’t needed and just see how much extra money you’re spending without noticing.
- We often waste much larger amounts of money buying items that we simply don’t need. Yet another pair of shoes, DVD’s that are never watched or the stack of sports equipment that is sitting in the garage. Budgeting is often thought of as a way to track bills and expenses like groceries and electricity. Because non-essential items aren’t counted as an ‘expense’, we often forget to account for, which means there is no spending limit placed on them.
- Thirdly we overspend on the ‘set and forget’ type bills. The main offender here is insurances, and if you’re like most, then you have quite a few. Maybe you took the time and effort to shop around when you first set an insurance up? If you pay these bills annually, and even more so if you have set-up to pay them as a direct debit, than then it’s highly unlikely that you will take the time to shop around each subsequent year, even when the insurance company sneaks your premiums up.
We have said it before, and there is no doubt that we’ll say it again - Each of these points really just come back to budgeting! If you genuinely want to make a difference to your financial health, then it’s time to take the next step and learn how to budget well.
Think Money has an expertly designed Cash Management System that teaches you how to budget like a pro.
Make a time today to speak to one of our Wealth Coaches about getting started.
Yours in Wealth,