Photography: Fotolia
We have made financial plans to meet our life goals in our family budget. We also made a forecast on future income and expenses, to save money and to put it away in investments for the future. Yet, there are still leakages in our expense budget. Some are so small and so frequent that we do not realize it until we ask ourselves, "Where is the money to save and invest?"
The most effective way to help you identify these leakages is to record every expense you made and to compare these expenses against your budget. Here are 5 of the most common small expenses that suck out your budget:
1. Impulsive purchases.
Buying things at the spur of the moment during visits to the grocery store, supermarkets or malls can make a dent in your budget. Just for fun, have you opened your kitchen cabinet lately and found items that lasted beyond their expiry dates? Did you really need that? Did you find two of the same unused item because of its sales promotion deals?
2. Hanging out.
If you totaled the amount you spent on that cup of espresso at your favorite coffee shop or beer at those hip bars, every time you casually hang with your friends, you'd be surprised. You will save more cash if you invite your friends to have a brunch or BBQ at your house instead.
3. Phone bills.
It's always easier to just call, right? Not if you know how much your carrier charges. Try to meet up - it's better for your social life. Opt for the chat messenger apps, because that's a more budget-friendly option.
4. Eating out.
How many times do you eat out when you can actually dine at home for half the price?
5. Branded goods.
Sometimes we have a weak resistance to satisfy our self-esteem craving and put a huge hole in our budget.
The above are just a few examples. When you think about it, there's really a lot more. It is wise to recognize that emotions play a huge role in your buying decision and that you need to stay strong in our self adequacy against temptations. Record every possible purchase before it happens and remind yourself that the purpose of making your budget is to help you in making essentials purchases.
