Benjamin Franklin said, “Beware of little expenses. A small leak will sink a great ship.” That’s still very relevant today. How much do you spend on lunches, dinners out, and entertainment?
The average person tends to focus on big, expensive purchases and be mindful about those. However, little expenses, such as a daily Starbucks latte, are often overlooked because they seem very small. But what is the big picture of buying, for example, a Starbucks every day – $150 a month, $1,800 a year? When people see the big picture, often they state they are spending more than they thought and more than they are comfortable with. Cutting back on a small expense could mean being able to pay off a debt earlier, or build up savings quicker.
Cable and satellite television have fallen out of favor in recent years and now streaming is popular. It might only cost $5-$12 for a streaming service, so that seems fairly inexpensive. However, some people are saying that they now have quite a few streaming services and the cost can definitely add up. Tracking our expenses for one month will let us know just how much we are spending on things and to identify any spending blind spots that we may have. Simply keep track of all your spending for just one month. Add up your various categories and see if any areas stand out where a cost reduction ought to be made. Perhaps one streaming service needs to go, for example, or a cheaper plan with ads should be utilized.
CCOA has helped thousands of people examine their spending and can help you, too. For more strategies and a free budgeting/financial counseling appointment with a caring financial professional, contact CCOA at 479-521-8877 or schedule an appointment online. Appointments are available in person, by phone or online.
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