Identify “money Leaks” That Spoil Your Budget Over Time
When you pay for something super expensive, your budget is immediately hit. But there are smaller, finer costs that get more expensive over time. Trulya points to several common “money leaks”.
Money leaks are essentially expenses that increase over time and eventually tire your budget. Some of them are so subtle that you probably don’t think about them at all. For instance:
Falling Prices : Cable and ISPs are often the culprit behind “price hikes.” New customer pricing will eventually expire and sometimes commissions are not charged correctly. If you are not paying attention, you may be paying a lot more than your budget.
Food Waste : … A study by the Natural Resources Defense Council found that Americans spend 40% of their food purchases, averaging $ 2,000 a year for a family. Meal planning and resisting the urge to buy in bulk can work wonders when it comes to reducing waste and dealing with this common money leak in society.
Energy Complaints : If your heating or air conditioner is overloaded during the hours you’re out, you could waste hundreds of dollars every year. Other energy sources that can cost you dearly? Outdated household appliances and incandescent lamps. Make a few small changes and you can spend less throughout the year.
To pinpoint these issues, look at how your budget changes over time. For example, if you have a Mint account, study trends and view your spending in a specific category over time.
This way, you can see if your spending has increased in any particular area. If so, it could very well be a money leak. For more information, go to the full version of the message at the link below.