Five Money Monsters That Can Devour Your Dough
Have you ever taken a look at your finances at the end of the month and thought there is no way you could have spent all that cash? It may feel like there is some money monster out there packing on the pounds and devouring your hard-earned finances. There are plenty of things in life that can end up absorbing your money before you even notice. Here are five money monsters for you to watch out for.
Unexpected Costs
Have you ever gone to make a purchase only to realise that it is more expensive than you thought once you are already checking out? For instance, when a coupon doesn’t work or a sale ends before you anticipated. It can be really easy to just go through with the transaction anyway since you’re already there and you’ve got your heart set on the product. The best thing to do here is to check your budget to make sure it is still in your price range. If not, wait a few months and save up or find an alternative.
Gifts
Gifts can be a hard thing to deal with because on the one hand you want to give your friends and family tokens of your appreciations but you also don’t want to go broke doing it. Now, I normally don’t like when people suggest cheesy alternatives such as giving homemade gifts. Unless you are either 5 years old or a master craftsman this probably won’t work very well. Instead try to keep track of all the events that you plan on buying gifts for and budget out a sufficient amount of money ahead of time. If that isn’t possible, then you may consider some of the alternatives like re-gifting or giving gifts of your time rather than material.
Credit Cards
Credit cards are another very easy way to spend more than you think. When you spend cash, you know it because you see it leaving your hand forever and your wallet is a bit thinner. When you use a credit card all you feel is a quick swipe or click and you feel no difference. However, credit card abuse is a treacherous road to travel since credit card debt rolls over and accrues interest very quickly. If you find yourself in credit card debt make sure you begin to pay it off immediately.
Dining
It can be very easy to splurge when you are dining out, especially when you are with friends. After drinks, appetisers, the meal, and dessert you have spent some serious quid. The best way to combat this is to budget out your meal time and stick to it. If you can, budget in one night a month that you can afford to splurge a little.
Repairs
Unexpected repairs can put a big dent in your finances and they can be difficult to avoid. If the malfunction is minor and you can live with whatever it is for a month or two, wait a while and accumulate enough savings to pay for it. However, it is even better to have budgeted for emergency situations in advanced. That way you won’t risk going into debt when faced with an emergency repair.
The main lesson here is to plan ahead of time for as much as possible. Your budget is your most effective weapon against money monsters.
