How many times have you written out a budget and felt really good about it, only to realize after a few months that you really aren’t paying much attention to it?
In fact, maybe that budget isn’t worth the paper its printed or written on, and at the end of the day, you still are losing money at the end of every month.
What you have written may not be what is coming to pass, quite frankly, in that your budget isn’t really working for you and is just there, doing very little to help you save money.
The real key to saving money and having a budget is paying attention to more than just the line items on it, but rather viewing a budget as an all encompassing entity that extends beyond utility bills, car payments and rent.
As much as financial experts and those adept at saving money will tell you to track every last cent you spend, that process really doesn’t do much by frustrate you and leave you questioning how someone does that and still manages to have a life, truthfully.
Instead, think about trends that you see as being issues or would be problems that are causing you to lose money in the long run, thus making saving nearly impossible. For instance, you may not think much of a movie or two being purchased through your cable company but three movies per week at nearly $7 each is costing you almost $100 per month. That trend means you’ll spend over $1200 per year on renting movies. Do you have that kind of extra money?
Furthermore, a $10 lunch bill every day seems harmless if not superbly convenient for you as far as not having to worry about packing a lunch. But that $10 means you’re spending $50 per week or $200 per month on just one meal per day. Think about the money you’re already spending on groceries and you realize you’re paying twice for food.
Incidentally, that lunch bill is costing you more than $2000 per year, hardly worth the convenience or that salad or soup you’re enjoying.
As much as you want to get super specific, the only time you want to dial down that closely is for the aforementioned purchases that come across as more trends than tedious watching. Budgeting can be done in a way that best fits the person, rather than trying to fit your square peg thoughts into the round hole of thinking that others tend to use.