This is part one of a series I’ll call Spending Smart. What I hope to accomplish with this series is to raise our awareness of spending and find ways we can better manage it. Learning to control our money does not happen in one day. It is definitely something that is learned over time and tweaked as time goes on. So without further adieu, here we go…
Over the past few years, my family and I have made some drastic financial changes. Not all of these changes were totally financial, they were mental as well. I hope the suggestions here will affect you similarly. Let’s first start with the problem stopping us from Spending Smart.
“Failure to plan is expensive.” – Mary Hunt
Unplanned Spending
This can happen in many ways. Some unplanned spending we are aware of, but we just do it anyway and deal with the consequences later. Others just kind of sneak up on us and we don’t realize what’s happened until it’s too late.
Way back before we really got the gist of money management, my husband and I spent money kind of haphazardly. We made sure all bills for the month were paid. And because I was a commissioned employee, I made sure I set aside money in savings (for those not so good months). Then we kind of just spent the rest. No real purpose. No plan.
I’m sure we’re not the only one’s that have fallen or falls victim to this kind of thing. It can happen in at least three ways.
- Small or Large Irregular Expenses. These expenses occur a few times per year (maybe bi-monthly, quarterly, twice per year, etc.)
- Small or Large Impulse Purchases. Purchases that happen at any time.
- Murphy’s Law. “Anything that can go wrong, will go wrong.” Purchases that have to be made for daily functional living.
How this affects us.
Unplanned spending causes stress and undue frustration. Money spent on frivolous things many times cannot be retrieved which means you have less to pay for your items of necessity. This can snowball into using credit, borrowing from family members, neglecting other obligations, etc. All of which are bad choices to rectify a problem.
This happens more often than we’d like to admit. We continue to make the same bad decisions which help us get nowhere fast. Here’s how it goes: You don’t have enough money to do what you want so you do it anyway and suffer the consequences later. Have you ever heard of this? “I’ll cross that bridge when I get to it!” I have. The Cambridge Dictionary online defines this statement as…
an expression which means you will not worry about a possible future problem but will deal with it if it happens.
Well, guess what? You will arrive at that bridge and it’s not that great of a feeling standing there wondering how you will cross over. I’ll state for the record that I have been there, done that and got the trophy.
In the early part of our marriage, my husband and I spent lots of time going around the same mountain not realizing that life would have been a whole lot better if we’d just practiced better spending habits and planned for future expenses.
What Can You Do About It?
If your personal finances are not where you would like them to be, you have a few options. You can continue on the same path and get the same result OR make plans to change it. That’s it.
I can already hear someone saying, “You can’t plan for everything!” My answer: No you can’t, but having some type of blueprint will get you out of the wilderness a little faster than if you had nothing.
If you decide that change is what you want and what you need, that is a great first step. It may not be easy, but in the long run you’ll be much better for it. Doesn’t that sound like peace already in the making? Join me and the rest of this community here to engage in and promote financial education. We can all learn a thing or two from each other.
So, how about you on the other side of the screen. Are you in the process of finding a way to better manage your spending? Have you managed to take control already and are reaping the benefits? I’d love to hear about it.
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{ 6 comments… read them below or add one }
This is terrible of me to say I know, but I used to buy things and return them if another unexpected bill or expense came up. I’d get the purchase amount put back on my card and then pay that bill.
Now what I do is if I have an impulse to buy is I pick out the things I want, put them in the cart or dressing room. Then I stand there and I’ll read my email on my phone or update Facebook. Something, anything to take my mind off of shopping for about five minutes and then when I get back to my stash I look at it and realize I didn’t really want or need any of the crap I selected.
LMBO!!! Ms. Freeman that is too funny, but don’t think you are alone. I could name a few other culprits in my family that do the same. At least you came to your senses and realized that your necessities were more important.
As far as in store decisions, I may put a questionable item in my shopping cart and make a final decision by the time I reach the register. To me, this shows careful and mindful shopping. Congrats!
I have set up a bunch of different accounts in ING. I know this is a pretty simple solution, but when I think about buying something, I think in terms of what I have in my “Spontaneous” fund. Just taking the time to think about that and knowing that it will take about 3 business days to transfer to my “real” account, usually deters me enough to not pull the trigger.
And I know having a planned spontaneous fund is kind of funny, but I think it adds a bit of humor to the stresses of money management.
LOL! You don’t want to spend your “spontaneous” money? I understand. You just really want to be sure before making a purchase. A planned spontaneous fund is actually a great idea and helps to “relieve” the stress associated with mananging money. Thanks for commenting.
We are much better at handling the irregular expenses now than we were 3 years ago. Most recently, we are dealing with impending pay cut…our focus now is pad the Emergency Fund. I also started part-time second job this past week.
Same here! Learning to manage those irregular expenses has surely reduced the stress level in our home. Pay cut? That’s definitely not fun to hear. But it’s great that you guys are being proactive now instead of reactive later! Wishing you the best.
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