Is Invisible Spending Really Holding Me Back?
Have you ever questioned where all of your money has disappeared after looking at the balance of your bank account and thinking you had much more than you do? With the increased use of online shopping, online payments, and super-fast payment methods, spending your money is much easier than ever. Therefore, this means that many individuals are losing track of their outgoings and falling into debt. After all, with the freedom and ease of new methods, making small purchases without a second thought can soon add up to much more than we expected. Despite being much more convenient for most people, the main problem is that these purchases will keep growing, and in no time you’ll realise that you have less money available than you anticipated. With all of these issues piling up, it’s time to ask yourself: Is invisible spending really holding you back?
What is Invisible Spending?
When you make minor purchases without giving them much consideration and do not consider the impact they might have on your balance, this is known as “invisible spending.” Often, these purchases are inexpensive, therefore adding to the ease, and forgetfulness of the purchase. Because the amounts are so small, you may believe that buying a coffee in the morning or your lunch at work every day does not add up. However, you’d definitely be surprised. Perhaps you should review your spending habits from the previous month, or from when you received your last wage. This way, you can add up all of the small, unconsidered purchases made that month in order to see how much you could actually be saving if you swapped these for a more inexpensive option.
How To Cut Invisible Spending
After reviewing your finances and the money you’ve spent since your last paycheck, you’re now seeking ways in which you can cut down on your invisible spending. This tends to be much harder than cutting down on normal spending patterns, as you don’t actually realise you’re doing it. However, it is now time to learn more and eliminate all unnecessary spending habits from your budget. So, here are some tips you could try:
Review Your Current Memberships and Subscriptions
Often, we find ourselves paying for things we do not actually use. Perhaps this could include a forgotten gym membership or an annual subscription package. Or, on the other hand, you might pay for a gym membership that you do use, but only occasionally. It is important to go through your subscriptions and memberships and cancel those that are not exactly your highest financial priorities in order to make room for necessary expenses like debts or savings. Consider how much money you could have saved if you didn’t buy coffee every morning or eat out every day.
Track Your Spending
There are numerous ways to track your expenses, it’s just a matter of finding a way that suits you. There is nothing worse than overspending and not having enough money to afford essential debts and payments. If you find yourself in this position with no way of funding the bills, perhaps a short term loan could help. However, in order to avoid this situation again, tracking your spending and fixing your budget is important. We advise you to begin by reviewing your current spending patterns and then categorising your expenses to gain an idea of where your downfalls sit. From here, you’ll have a clean slate from which to track your spending habits and successfully build your budget.
Reward Yourself For Progress
You may think that rewarding yourself for good money management defeats the purpose. However, your rewards don’t have to be financial. Since saving your money has positively impacted your budget, you should give yourself the treat you’ve been wanting. This will not only make you feel better about the restrictions but will also motivate you to keep going and push yourself further.