Budgeting doesn’t need to be all about restraining yourself from things you like in everyday life. Budget helps you to identify financial leaks, where you may have not noticed occurred. But also it helps you to stay on track with increasing financial commitments in your life that bring more value than other expenses.
Imagine if you spent only on things that brought you a great sense of comfort into your life? That can be achieved if you plan for what you spend and keep up that attitude. However, life brings us all sorts of things and we inevitably get these spillages. You may be thinking that this is OK to lose a little bit of money here and there, but these spillages, if not taken care of on time, can break into full out tsunamis – sweeping you and your bank account.
Credit Card Interest Payments
So, one of these dangerous spillages I am talking about is your credit card – or the interest that you have to pay on it. Credit cards have the highest interest rate out of all loan options you can get. Some people share that they have over £10,000 in debt due to compounded interest over time.
It may feel like they are not giving enough when they get someone a cheap present. We want to impress and make these people happier by providing something they might need or something that comes with a sprinkle of status. I have been there too – when I moved to UK and started saving all I earned, I didn’t want to spend much on presents for others, yet I did it anyway.
To say the least – spending on pricey gifts can be satisfying, but not only your financial aspirations suffer from it every time, but also you’re really making a disservice for the other person by taking the responsibility to finance their aspirations on their own.
No, no, no, I don’t mean that you should stop having that sweet 4G all year round. I mean that from time to time you need to make sure you’re not overspending on your agreed rate. A lot of the time phone companies might throw in a couple of pounds just because you made a call a little too long, or to another country.
Also, if you’re not getting regular calls from your provider and your contract is getting to an end, it’s a good idea not to just go for the same thing all over again. After all this time, your provider might have a better offer for you, or you may find a better one with a different provider. It is easy to just go for the same thing as it saves you time, but if you’re trying to save money, then you could as well save a couple hundreds on your phone bills.
Nowadays we got so many thrift shops, charity stores, second-hand shops, etc. You can buy a new set of furniture for remodelling your house, and it will feel amazing, flesh and luxurious. But actually, some sources report that nine in ten people would be happily buying second-hand items rather than buying new. So not only buying second-hand stuff can be cheaper, it is also a new norm.
Too Much Of Anything Is A Bad Thing…
If you had a number of takeaways in the last 7 days or so, then I think you got a spillage there. While yummy takeaways and other impulse buying can be very tempting, it is one major money drainer. And that goes for anything that you spend too often for and that you don’t exactly need to live. Another pair of shoes? Forget it, you got 10!
… Unless It Brings You Joy!
But also, this I think should have a ‘black list’ or a ‘while list’, whatever you want to call list. There you would register things that brings you joy in life. And there is never too much of something that brings joy, as long as it doesn’t kill you! But this one is a little slippery in terms of what to consider as something that brings you joy or not because our emotions do cloud our judgement. Personally, I keep to the principle that if it is bad for my body, than it doesn’t bring joy no matter how good it may feel in the moment.
Thank you for reading this post, I’ll be back to you with more money wisdom’s for artists tomorrow!
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