Does it seem that you never have enough money to buy the things you would like to or need for your family? If you answered yes, you may have some leaks in your spending. That means you are spending money without knowing where it is going.
This can be a serious problem that can threaten your financial security. And stopping leaks in your spending can help you get more of those things that you want for your family.
There could be many reasons for the leaks but learning to recognize some of them may help you plug the leaks.
Do you keep meaningful records of where your money goes? Keeping track or keeping a record of your spending will show where your money is being spent. From this record, you can decide whether you should make changes to your spending plan and exactly what changes to make.
For example, as you keep a record of your spending, you will begin to see areas that you will be able to cut back on or eliminate.
Spending is a leak once you realize how much you are spending, and the purchase feels that it is not worth the money. For example, you may not appreciate how much you spend eating lunch out every day until you track your expenses and then realize the amount of money you are spending weekly or monthly on lunch.
Do you plan to spend your money? Planning to spend your money can be well worth the effort. That’s because it can help you spend your money wisely rather than letting it disappear without a trace.
Start with your income, and then write down your spending categories and how much money you will allocate to each one. With careful planning, you may begin to get many of those things that you want for your family.
Do you live within your means? Living within your means says that you are not spending more than you can afford or more than you make.
If you are living within your means, you are spending money wisely and not using credit cards for everyday expenses. If you live within your means, you won’t need to use credit cards and loans for everything.
Do you buy only what you need or use? Buying in bundles or buying more features than you need or use will slowly drain your spending plan.
Remember, little expenses add up.
If you are not watching those extra channels on cable or using your TV or movie subscription service like Netflix, or using extra features in your phone plan, consider scaling back to what you do use to cut down on cost.
Do you plan your shopping trips? Before heading out to the store, take note of what you have and what you need. Try not to shop when you do not need anything, going shopping when you’re bored, or going shopping to kill time.
Have you ever walked into a store to get one thing and came out with a cart full of merchandise? Were all these items necessary? How will this purchase affect your budget?
When you are going shopping, making a list beforehand and stick to the list. Sticking to the list will prevent you from going over your budget and making unnecessary purchases.
Stopping these leaks in spending will help you purchase some of the things you want for your family. Additionally, by tracking your spending, you will begin to see areas where you will be able to and where you can save money by cutting some expenses. Subscribe to my blog here and get more practical tips to help you plan your spending.