Interestingly, with each and every one of our clients, we discuss not only how to save you money on your loans, but how you can make your money work harder for you... little things can make a big change, and when you look at the little changes you could make weekly, and then consider the greater impact over a year, the difference can be immense.... wondering why you are still not getting ahead?
Consider some of the points below, and you may just find that loophole... I know I am very guilty of 6 and 7, what are you guilty of?
REASONS YOU KEEP OVERSPENDING
1. YOU DON’T HAVE A BUDGET.
Not having a budget is like trying to walk with a blindfold on. Yes, you may be OK at first, but eventually you’re going to stumble. Take the time each month to go over your finances. List your income and expenses then determine what you need to adjust and take action. It takes time, but eventually you’ll see that your efforts are paying off and you’ll be less likely to overspend. Remember that “failing to plan is planning to fail”.
2. YOU USE THE ATM.
I know it’s convenient and at times necessary. But realistically, how often do you go to an ATM that is not your own bank, and pay for the convenience? Instead, go to your bank to withdraw cash or request cash back when checking out at a retail store. There are no fees for either option, and over a year, this could save your hundreds of dollars.
3. YOU DON’T PAY ATTENTION TO DUE DATES.
This one always gets me. I pencil it in and even set up alerts, but if I’m busy at the moment I wind up forgetting. So in the end that free movie night winds up costing me more than a few nights rental. Since I know that I have a lot going on,I have changed the way I do things... Council rates and water rates are paid weekly, and I either set up automatic payments for the date on which a payment is due, or, I pay it as soon as I get the bill, so that it is done with, dealt with, and I am already forward focussed.
4. YOU BUY THINGS ON IMPULSE.
You’re out having a great time with your family at the park. You decide to head home when someone mentions what a great day it is for ice cream. Instead of going home you head to the local ice cream shoppe for some frozen goodness. Sound familiar? I’m not opposed to a treat here and there, but it can become an issue when it happens all the time. An overpriced coffee here or an ice cream there will soon add up (especially if you have a big family!). So set aside “fun” money when you budget and keep the impulse buys to a minimum.
5. YOU DRIVE UNNECESSARILY.
You head out to pick up something you need from the grocery store. Later in the day you head back out to go to the post office. Then you remember that you need to go to the pharmacy so back out you go. I drive a large SUV so I’ve had to learn how to make the most out of my errand runs. Before I head out I make a list of all the things I will need and make all stops in one run. Fuel prices are not cheap today so make the most out of every trip you take. And, for me, my time is valuable, and it drives me crazy when I forget to tick things off the list! And back to Westfield I head.... :(
6. YOU DON’T TAKE INVENTORY.
You have an unopened bottle of ketchup at home, but wind up buying another one because you failed to check your pantry before heading out to the grocery store. This is just one of the many ways we wind up spending more money than we should. It can be anything from groceries to household products. While I’m planning meals or heading out to purchase anything we need, I take inventory first so that I’m not spending money unnecessarily. Always make sure you check out what you have at home first before wasting your hard earned dollars on duplicates.
7. YOU PAY FOR CONVENIENCE.
Everything that’s convenient cost more. When you can’t cook and go through a restaurant drive-thru, you’re paying more than it would cost you to make a meal. You don’t want to take the time to wash your own vehicle, that’s fine, but again it will cost you more to take it to the local car wash. Unless it’s something you absolutely can’t do yourself, try to figure out how you can obtain similar results on your own.
Do you make any other changes on a daily or weekly scale, that you have found make a massive difference?