Are you wasting your money?

For couples who have double income (kids or no kids) who aren't paying attention to where and what they are spending their money on, it can be quite a shock when they sit down and see where they believe they are wasting their money.

 We go along, spending our pay, from pay to pay, thinking that if we have a few hundred dollars left in the account a few days before pay day, then we haven't spent it all and we are doing OK.

Then that big bill hits.  You know - the car service that needed more parts or the dog gets sick and the vet charges way more than what's in the account.  Surprise!  That few hundred dollars isn't enough, and it's pay day in a few days time.  Can I have a payment plan until pay day?  Or can it wait?

Those couple of days are stressful.  What to do, how to handle it, what to tell your partner?  Sleep is interrupted.  You are feeling more crabby than normal.  What to do?

Pay day comes and it's all ok.  You pay off the bill, and move on.  It's all forgotten, and you continue to spend your money like normal, leaving a couple of hundred in the account for a few days before pay day.  It's all ok.

What if multiple emergencies happen at once? What if that big bill is bigger next time, and can't be dealt with in the next pay?

In Money Matters, we approach this in several aspects.

1. We look at where you might be wasting or overspending, so that you can put funds towards an emergency fund / buffer account, so that you always have money available for those what it moments, that pop up out of nowhere.

2. We look at what those costs might be, so that you can make sure there is enough in your emergency fund - because what you need might be different to what others need.

3. We look at the things that you are spending money on, and prioritise them so that you always know that you are spending money on the important stuff, but still have enough money to play with, so that you don't feel like all you are doing is working to save money (you get to spend it on stuff you love!)

Are you ready to work out if you are wasting your money?

Here's a tip: take a guess of your top 3 areas that you waste your money.  Write them down, as well as a guess of how much you spend in these areas over a 2 month time frame.

Once you have guessed how much, have a look and see what you have spent by looking at your banking records.  Compare the two answers.  

If your guess was way off, why do you think that was?  
Do you think that you need to change something?  By giving yourself an allowance (generally using a separate bank account) for those items, you might find that you will change your spending habits, and have more money available for things that you do want to spend your money on.