Create a Hidden Cost Budget to See What Is Draining Your Resources
Most of us have a budget for what we pay for. However, this is not what costs us money. If you’re trying to improve your budget, start including a section on things that cost you dearly in areas like productivity, health, or time.
As Business Blog Inc. notes, this concept is often applied to companies looking to optimize their bottom line. For example, poorly trained employees can hinder company productivity. One well-trained employee can do in 10 hours what a poorly trained employee can do in 20 hours. You can also apply this concept to your daily life. If you commute to or from work ten hours a week, try using public transportation to at least spend that time doing something productive. If you spend too much time cleaning the house and little time with your children, perhaps hiring a cleaning lady could be worth your money.
Of course, this concept can apply directly to your finances as well. Every month you don’t save is money that you cannot invest in an investment that can end up costing a lot more . Even saving $ 5 a week is better than nothing, as you’ve probably gotten angry more than once. While this seems like a better place in your budget, the real value of that $ 5 will be higher in the future.