Food, Fuel, Fun and Incidental Expenses
Recently I decided I should document what I have learned as a money coach over the last 25 years. I identified 18 topics that I now use in creating my Money Hints and Tips (like this one).
One topic focuses on ‘The 6 types of Expenses’ we all have to deal with in our lives.
Now if I said to you, “Did you know that there are only 6 types of expenses that you will encounter in your life”, would you be surprised? Yes, you will make a bazillion transactions, but they will all fit into one of the 6 Expense Types I am referring to.
Each of the 6 types of expenses has different characteristics, and they need to be managed according to their type. If you are not aware of this you will find money much harder to master than it should be.
I’m going to deal with each of these six types in separate Money Hints and Tips episodes so stay tuned.
The first type we are all familiar with. It’s Weekly Living Expenses. Here I’m talking about Food, Fuel, Fun and Incidental expenses.
You need to allocate a sensible and affordable amount to Weekly Living expenses each week, and when that money runs out you need to tough it out till next week.
If I were to ask people how much they spend on weekly living expenses each week I can just about guarantee that the amount they THINK they spend and the amount they actually do spend is significantly different. That is, they have no idea of how much they really are spending on ‘stuff’ each week, and it is often costing them a great family holiday every year!
That hurts!
By creating a spending plan for their income, most families find they have been allowing around 10% of their income to simply disappear each year on ‘stuff’. If your family income is between $50,000 and $80,000, for example, and in your spending plan you assign the money that previously disappeared on ‘stuff’ to a holiday, that’s between 5 and 8 thousand dollars! That should get you a fairly reasonable holiday, wouldn’t you say?
Creating a Spending Plan is one of the absolute best ways to take control of your finances and get more of what you really want out of your money.
I created the Spending Planners Institute to train people who are passionate about teaching people who are tired of money stress, how to take away the guesswork and create a roadmap to get what they really want out of their income.
The cost of setting up a plan is minuscule in comparison with what you gain. Visit www.spendingplannersinstitute.com to find out how you can change your life for very little outlay.
Take Control of Your Finances
If you can take control of your spending by making some of the little changes above, you’ll put some breathing space between you and your money stress, allowing you to relax and start building a stable financial future for your family. How many expenses do you accept in your day without question, and where could you reduce your weekly outgoing money just by changing a few habits? If you just can’t get your head around that and/or you are tired of money stress and have decided it’s time to take control, talk to a Spending Planner to find out how you can break the cycle. BOOK A FREE CALL
You have nothing to lose and lots to gain. Spending Planners are non-judgmental professionals who are trained to help. A short relationship with a Spending Planner will provide you with tools and training that will benefit you for the rest of your life!