I work with everyone from high finance to low income, couples, individuals and business owners.
From working with all types of clients, I have found these to be the 3 biggest budget busters!
- Booze- It is somewhat scary that I have to tell people that Booze does NOT count as a grocery item! One couple I worked with admitted they like a case of beer and bottle of wine once a week. They figured they were spending around $200 a month on booze. Imagine their surprise when we looked at the bank statements and credit card statements and they were spending more like $600 a month! That didn’t include the wine that they were able to get at the grocery store! This same couple was only putting $50 a month towards their retirement because they “couldn’t afford to put more”. When we were able to see they were literally “peeing” away their retirement they re-prioritized! How much do you spend on booze? Are you the kind of person that offers a beer or glass of wine to people when they visit? While I’m sure they appreciate it ask yourself how much does that add up to over a year? I can honestly say the average booze budget buster is somewhere between $300-$$600 a month! YIKES!
- Eating Out – It may be listed at #2 but it is most likely the biggest budget buster out there for most people. A coffee here, a lunch with friends and then the screw it I don’t want to cook dinner. All of a sudden you’ve spend $100 in one week on eating out. Based on before budget averages, most couples I work with are spending $975 a month eating out. Single individuals $400 a month on eating out. Where does your budget for eating out sit? In my house we try to stay around $300 a month and I’m not going to lie some days it is hard!
- Cash – It is untraceable (unless you keep all receipts). It disappears quickly. Twenty dollars here, another Forty there, before you know it BOOM a couple hundred bucks gone. Now granted I recommend people move to a cash budget, I even wrote an article about a cash challenge! Experts say when you use a card over cash you will most likely spend an extra 10-30%! It is proven you spend less when restricted to cash. Even for myself I know I spend less when I take out only the cash I need to make it for the week. Before budgeting and planning most of my clients are burning through $500-1000 in cash, and they don’t know where it went. If you realized you were “losing” $1000 a month wouldn’t you be concerned?
Do you identify with any of these budget busters? The good news is that as soon as you bring your awareness to these 3 biggest budget busters the sooner you can make positive changes! If you’re not sure where to and need some budgeting help start join me in Prince George for Budgeting Basics: Building a Budget That Works!
This 2 hour course is only $20 and will help you gain the confidence you need to take charge of your cash!
If you don’t feel comfortable in a group setting contact me for a free consultation. Money coaching can help you overcome fears, anxiety and stresses over money. It can help increase your communication and confidence! Learn more about money coaching in my FAQs!