Spending: Why You Should Sweat The Small Stuff

OK Damsels its time to get your finances in formation!!!

Today we’re going to tackle the number one reason why you ain’t got no money in the bank … Your S P E N D I N G ! Tweet: Tackle the No. 1 reason why you aint got no money in the bank with @KayCNoDistress read more here: https://ctt.ec/I1N20+

Spending on small purchases has a tendency to have a snowball effect. At first its just $7.32 on Monday for lunch. Then its $6.48 on Tuesday for breakfast, on Wednesday its $14.51 at the Pharmacy, on Thursday lunch runs you $12.39, then you blow $58.71 on dinner + drinks at happy hour on Friday. Each time you swipe your card or shell out cash to cover small day-to-day expenses you don’t realize how many coins you’ve blown through in a single week. Before you know it you’ve spent $99.41! That’s not including your daily coffee habit of $2.22 after 4 days it brings your total of discretionary spending to a whopping $108.29 in just 5 days.

If its in your budget, $108 isn’t too bad. That’s only, IF its in your budget! If you are in debt or have less than what you’ve spent in your savings account, its ALL bad!

Since you’re reading this, you’re probably like myself and in a constant battle between your desire to be a financially sound adult and living the high life. If so you’re in the right place! I have scoured the internet to developed a Financial Planning Workbook to help Damsels like us get & stay out of financial distress!

Are you ready to #GetYourFinancialLife?

Click THIS link to join the newsletter + get your copy of the Financial Freedom Workbook in your inbox!



Follow these 3 tips to avoid falling victim to the snowball spending effect.

  1. Prioritize debt repayment. Making debt repayment a priority is a tough task to do. Especially when your coffee is only $2.22 a day and your debt is thousands upon thousands of dollars. Choosing to put that extra $40 a month towards debt repayment rather than buying your daily en route to work coffee takes sheer grit + self control. But those are two things I KNOW you have plenty of no!? DIY-ing your morning java for 6 months will allow you to put an extra $40 to your student loan payments per month & would be an extra $240 toward your debt in 6 months. Instead of feeding your daily coffee habit how about reducing your debt by an $500 at the end of a year!
  2. Save. Save. Save. Before you spend. Since you’re prioritizing debt repayment it can be difficult to save too. But it makes NO SENSE to be a victim of interest rates rather than benefiting from it. Try to find a happy medium between stashing to save for later and dishing paying off debts. It may be beneficial to look into an online bank with higher interest savings accounts. So you’re earning more for stashing your extra cash instead of spending it.
  3. Also, consider the cost to reduce spending.

    Consider the cost in time.
     Before you spend consider how many hours you would have to work to pay for it based on your hourly pay. For example: If your hourly pay is $10 and you want to purchase a dress that costs $35. You would need to work 3.5 hours to pay for the dress. Is the dress worth 3.5 hours of work?! If so go for it!! If not #GetYourFinancialLife and don’t purchase it.
    Consider the cost in lost interest. Before you spend consider how much interest you could potentially earn if you would have deposited the money into your savings account. Considering buying a dress for $35 and have a savings account with a 4.5% interest rate compounded monthly, you could have earned $1.58 a month instead of spending that $35 at the end of a year you could have $54 or you could have a dress you only wore once.

Need help tracking your spending?
Download the spending tracker.

Did you fall victim to the snowball effect this past month? It happens to the best of us. Use my Free Spending Tracker to keep record of where your spending your hard earned coins. Keep in mind, your monthly discretionary spending should exceed your debt repayment nor savings.

& as always remember,

Distress

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