Tracking Where Your Money Goes And Fixing The Budget Leaks

Man sitting at a table full of unpaid bills shakes out the last penny from the piggy bank

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A water pipe that has too many leaks cannot be ignored as the volume of water from the outlet decreases and hence fixing the leaks makes sense. Similarly, small leaks in your budget can bring down the savings considerably.

In your life sometimes you are so busy that tracking your own spending can be challenging and difficult. If you ever get a chance to check how much you’re spending, that is when; it hits you so hard that you slowly realize how ignorant you were in money matters.

Here are some points to look closely at as you get underway to track your spending and fix the budget leaks.

Identifying Your Budget Leaks

Budget leaks are hidden or missed in your day-to-day spending.

How Much Do You Pay?

Do you just walk into a hair salon without looking at the best service, and cheapest barber? Likewise, do you buy clothes good enough to last as long as possible? Or, do you keep replacing your wardrobe? Listing these common expenses is to understand if you are blowing out more than you need them.

What Do You Buy?

Coffee can be a stress buster and hence addictive too, so how many times do you visit the local coffee shop to take a sip? Cut down the intake but no need to stop it completely. Do you carry bottled water? if not please do it. Carry your own snacks and dessert that might be draining your budget.

How Often Do You Buy?

The pandemic is an eye-opener for you to rethink your spending. With no money coming in cooking at your home, packing your own lunch for the workplace will save you enough money to sustain for the entire month and beyond. Food is one category where there are several ways to tackle it with minimum spending.

Do You Love Walking?

Walking is not just an exercise but a money-saving exercise too. Try flexing your muscles by walking long distances even if it’s your workplace, shopping, meeting somebody, and so on. It all depends on how to fit you are and never overdo it or out of compulsion.

Public transport can cover up the remaining distance if you are feeling lethargic due to walking. Remember, these are some good habits that can boost your health and savings as well.

A Full Stop For Discretionary Spending

Discretionary spending isn’t bad as long as you know how to control it. A fancy pair of shoes, a cool jacket, and everything that you love to spend your bucks on are fine but these are your choices and not life as such. Budgeting is a magnifying glass for discretionary spending that divides the less important with the most important.

Budget varies from person to person based on their priorities and nobody will ever want to dismiss it irrespective of their financial status.

The Bottom Line

The above discussion might not even refer to or bother you. Not all spend lavishly or spend carelessly or never thought about budgeting as it may come naturally to you. The tendency for an individual to feel low when it comes to money matters owing to a job loss, debts and retirement is when the question of money management takes center stage. Nevertheless, situations are not so bad and there is a way to tackle everything in life. If daily expenses and bills are a pain for you never mind because there are emergency funds that can fix it.

This page is purely informational. Line does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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