Budget Killer!
It’s the small purchases. These expenses are often habitual.
The can of coke at the servo with your petrol is usually twice the retail price compared to the supermarket.
This article isn’t about telling you not to treat yourself,
Coffee is not a luxury item. BUT, if you are serious about budgeting and hitting your savings goals, it might be time to skip the Zaraffas drive thru and make your coffee at home.
Successfully managing your money has more to do with psychology, and how you can most effectively convince yourself to make the right choices. – Tiller Money
Doing a budget won’t cost you money. You can download a free budget planner from the Moneysmart website.
Figuring out how much money you have available in a week is much more manageable than in a month.
To do a budget, you need to sit down and work out:
- Income
- Weekly expenses
- Monthly & Annual Expenses
- Where your current money is going
Then you can work out:
- Income needed to cover expenses
- Expenses that need to be cut back
- create savings goals
Small But Deadly Expenses
The following are small purchases that stack up to create a substantial amount, hacking away at your budget. It’s these items that seem insignificant, but trust me! Combined, they really add up.
None of these are necessities. Generally, they are habitual purchases, which can be hard to break when they have become a daily purchase.
Takeaway Coffee
Consumers convince themselves they are saving time, but sitting in the drive-thru is usually slower than making a coffee at home.
If you have a daily takeaway coffee habit, this could be costing you over $160 a month.
Takeaway coffee also produces a lot of unnecessary waste. Purchase a great quality reusable coffee cup, make your coffee before you leave the house and save a fortune.
Petrol Station & Store Upsells
Would you like a bar of chocolate for an extra $2? Sounds like a bargain doesn’t it. Not really. You can buy a whole block of chocolate at the supermarket for almost the same price.
Would you like to upgrade to a large meal for $1.50? Food outlets who do these make a fortune off of upgrades that are often left uneaten.
I’m not going to tell you to stop your daily can of coke habit. When purchasing coke in a carton, they average at around $1.20 each (When not on sale). The average can of coke from a petrol station is $3.50.
Subscriptions & Fees
Subscriptions – When was the last time you checked your iTunes Subscriptions or Google Play? I was shocked to find I had agreed to a free trial of Youtube Premium, not realizing I would be charged monthly for this service after the trial ended.
This went on for 6 months before I realized. Costing me $100.
We often assume because we don’t put our card details in, a trial just ends. Services like iTunes already have everything they need to charge recurring payments.
Fees – Are you digging a deeper hole with late payment fees? Add these up across all of your bills. It might feel like you can’t afford to pay on time when in reality, you cannot afford to pay late
Ticket Sales – Everyone loves a bargain
But are they really items you need? Half price socks are great, but if you already have 57 pairs….its a waste of money. If it was already on your shopping list, great!
There’s always something on sale. So don’t get FOMO over those yellow ticket items, they will still be there next week.
Casual Shopping Trips
Going in for bread and milk is dangerous on a budget! If you don’t have shopping discipline, you might come out with a pack of donuts and some on sale face cream.
To avoid in between shops, freeze bread and buy longlife milk.
Plan your shopping list well to cover the whole week. Stay organized by using this FREE printable meal planner.
If you want to avoid the supermarket completely, shop online.
Visit local fruit stores or markets to top up on fresh produce.
Free Resources In This Article
ASICs Moneysmart – Free budget planner.
Kate Shelby – Free Printable Weekly Meal Planner