Where does the money go? Answer: holes in your spending plan or spending leaks.
A spending leak is an uncontrolled expenditure of resources. Spending leaks are caused by a variety of reasons, both personal and economic. Common examples of spending leaks are susceptibility to impulse purchases, routinely paying credit card interest, or using energy inefficiently. Whether small or large, leaks add up and reduce the chances of achieving your goals. Sometimes spending leaks are hidden or camouflaged. So they have to be discovered. Others are more apparent. Once discovered spending leaks must be fixed.
Fixing a spending leak may be quick or require a long term behavior change. All are repairable with varying degrees of difficulty. Here is one spending leak repair that is sustainable. It is a behavior change that eliminates a leak for a lifetime. Make a quality decision to Stop Paying Fees. A quality decision is one from which there is no retreat. Most people don’t make a lot of those in their lives. Nor should they. But you can on this one. Just set your jaw, head down, and just do it.
Fees are not interest. They are other charges for privileges or penalties you have accessed through your actions. If you don’t access them, you don’t pay. It may take a strategy and some time to sustainably eliminate all fees but it can be done.I have for decades.
Here are 5 fees to never pay again. When it comes to my money I see paying these fees as a self-inflicted wound. Those are the worse kind. I decided to stop hurting myself on purpose.
Many household budgets are still in recovery from '"back to school" spending. Some of us don't even want to hear anything about money right now, especially spending more of it. But now is the time to prepare for one of the biggest challenges to your family finances, the Holidays' spending.
The retail-commercial-complex is preparing to launch all-out massive assaults on our minds, money, and happiness. Buy,buy, buy.... "Resistance is futile. Assimilate or be destroyed."
Here are three things you can do.
BUY MEMORIES NOT THINGS.
It’s almost impossible not to spend money in the USA during holiday time because of the opportunities, the social approval and the messaging to do so are limitless. It now starts with Halloween in early October. Followed immediately by Christmas and its’ greedy spawns: Black Friday, Cyber Monday, Small Business Saturday, Doorbusters, after Christmas clearance sales, etc. It finally winds down in very early January. About 94 days of hyper-consumerism and conspicuous consumption run amok.
Americans spent $707.5 Billion during the holidays in 2018. You are not immune. Since you are going to buy something anyway, buy something that lasts. Most people remember experiences longer than things. Is the preponderance of your fondest memories experiences or things? Special experiences with friends and family will be treasured by both the Giftee and the Gifter. Remember experiences don’t just have to be good to be memorable.
HAVE A PLAN BEFORE THE SEASON BEGINS.
Don’t go into this financially hazardous season unprepared. Have plan. Decide how much you will spend for the holidays. People spend money during the holidays on food for celebrations, eating in and out, decorations, gasoline for holiday-related travel to events, errands, and visits.
These expenditures are over and above the normal monthly spending required. The average American family spent over $800 in 2018 on such items. Oh yeah, don’t forget the money for gifts.
It is important that you take control of your spending decisions. If you don’t, your spending decisions will control you. Holiday hangover debt is never fun and last longer than the one from that great New Year’s Eve party.
Now that you decided how much you are going to spend. The next step is to decide how you are going to spend it. Will you use only cash or will you borrow from credit cards? If you have to borrow for holiday spending, you need to make sure it is not financially self-defeating. You also can make additional income to cover your holiday spending plan.
6 Things To Consider When Planning Your Holiday Spending
STICK TO THE PLAN.
Now that you have a plan. Stick to it. Believe me, that is far, far easier said than done. Because of the aforementioned messaging and social approval, it is HARD NOT to impulsively spend money during this time of year. Try as you might, you just get worn down and succumb. Let’s face it, buying stuff feels good. That’s the part of consumer psychology that retailers and advertisers have mastered and prey on.
Start implementing your plan early. That could include researching planned holiday purchases or buying before the holiday rush. Perceived time constraints can add to the holiday stress of gift-giving and food preparation forcing bad spending decisions. Look for seasonal employment to cover additional expenses.
Here are 10 Tips For Cutting Your Holiday Spending.
5/14/2019 0 Comments
The recent announcement of increased tariffs on Chinese goods will increase the price for thousands of consumer goods that are purchased every day. Here is a very abbreviated list:
On The List
Not On The List
It is not just how much money you make; it's how much you keep that makes the difference in your life.
Getting the most for your money is one way to do that. Making the right buying decision is an important skill to master. And a great habit to develop. Here's a way to do that:
Comparison shop everything, all the time, not just the "big items." To do that successfully you must be able to compare prices on your most frequently purchased items. To do so, you must use Unit Pricing. You can compare “apples to apples” with the Unit Price. Here is how to know and evaluate the unit price:
Electricity is essential to modern life. For most people the electricity in our homes is not free. Reducing its costs, even incrementally, can save real money over the long term.
Here are some discounts our local utilities offer that most people can benefit from with small painless changes in routine. You must request the discounts be applied to your account.
Time of Day Rate
You could reduce your energy costs by requesting DTE Energy’s residential Time-Of-Day Electric Rate. The more you shift your electricity usage to off-peak hours — early mornings, evenings and weekends — the more you could save.
How It Works
This rate is available to residential customers who choose to have their energy usage metered based on our on and off-peak hours.