We all know that we need to keep the roof over our head, the bills paid and food on the table. But we also want to be able to afford some of the finer things in life; the quotidian indulgences that bring us joy and fulfilment. A meal with someone special at a nice restaurant, a luxurious designer sofa or an absolutely killer pair of red pumps. It’s not all that much to ask, is it? After all, you work hard for your money. Why shouldn’t you be able to treat yourself every once in a while?
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It seems like we’re surrounded by temptation. From the gorgeous clothes and shoes in department stores to the cool tech gadgets that could make our lives so much easier and more enjoyable. Yet, it seems that whenever temptation strikes we check our bank balances, wince and say to ourselves “Not today, I guess!”. Do you feel like your household is leaking money, despite your general lack of extravagances in life? Is every bank statement the worst kind of surprise? We’ve already looked at the different ways in which we can cut costs. Here we’ll look at some ways in which we can stem the flow of cash out of the household and take back control of your finances.
It starts with a budget
There is nothing, absolutely nothing less sexy than sitting down with your partner and drawing up a budget… But it may just be one of the most useful things you ever did together. Without a budget, how can you possibly account for what’s going into and coming out of your bank account? The very act of drawing up a budget will make you feel more in control of your finances. If money is leaking from your household, a budget is a big ol’ wrench with which you can stem the flow. Any one of these household budget templates will work for you just fine so long as you stick to it. If nothing else it will condition you to be more aware of what’s coming into your household and what’s going out so that your finances don’t feel as though they’re left to the whims of fate.
Always look before you leap
Sometimes we can find ourselves in financial hot water because we simply didn’t take a good long look before committing to a major financial decision. When buying a new car, we may not have properly factored in how the monthly repayments would impact upon our finances. When buying a new house we may not consider how PITI can inflate our mortgage payments beyond just the principle; learn more here. Sometimes just a little extra homework can save us a lot of financial strife. Of course, when you have budgeted, you’re much better informed when it comes to making these kinds of decisions.
As yourself these 3 questions before every purchase
By and large, a lot of us have too much stuff and not enough money. This is an inevitable by product of a culture that treats shopping as a hobby and leisure activity. As such, we can while away a few hours on a lazy Saturday with some retail therapy yet after a while we find that we have to rent storage just to keep track of all the stuff we’ve accumulated. If you feel as though your possessions (especially your clothes) have gotten the better of you, becomingminimalist.com recommends that you ask yourself these 3 questions the next time you’re about to head to the checkout or hit the “buy” button online;
- Am I buying something new or replacing an item of clothing?
- Is it something I’ll wear regularly?
- Is it a style that’ll last
If you can answer all 3 questions affirmatively, there’s a good chance that you’ll get your money’s worth out of it and it won’t simply become clutter. So, go ahead and… TREAT YO SELF!
Get the little things under control (no, not the kids)
Very rarely do our household finances collapse on account of the big things. It’s usually a death by a thousand cuts. We often look at our bank balances and wonder what extravagance could have led to such a shockingly low amount. However, all too often it’s simply a case of $10 here, $20 there. It all adds up! The latte and croissant you picked up on the way to work to make the prospect of Monday a little brighter, the pizza you ordered because you were too tired to cook. All of these sundry expenses may not seem so fearsome on their own but they can rack up to a heck of a lot come the end of the month.
Write everything down
Invest in a cute little notebook and write down every purchase you make. Yup, everything. From candy bars to collagen injections. Writing it all down will be a real education for you in how much you’re spending and where it goes. It will make you more mindful of your spending and will condition you to think twice before making the little frivolous purchases that can build up as the month rolls on. When you write everything down, you’re far less likely to encounter any unpleasant surprises when you open your bank statements.
Take your head out of the sand when it comes to your debts
Most households today have some debts. In fact, it’s very rare that we’re able to get by these days without them especially in an era where raising a child costs us just shy of a quarter of a million dollars. However, there’s a difference between having debt and letting your finances be consumed by it. Many of us have numerous debts from credit cards and loans to store cards, each with a different rate of interest, coming out of your account at a different time of the month. This can be make your debts very hard to manage. Consolidating all of your debts not only makes them much more manageable, it can also save you a small fortune in interest and it will even improve your credit score.
If your house is leaking money, go ahead and reach for a wrench!
