Money And You: The Biggest Drains On Your Budget
Your budget has to cope with a lot. Household expenses, luxury items, a treat day here and there – there’s a lot to fork out for to live a happy life. But some items are more of a drain on your money than others. It’s time we went through the spreadsheet and worked out where those leaks are! To give you an idea of where to look, here are four top money drains everybody deals with, which might just be the biggest spenders in your own lifestyle too.
Subscriptions and Memberships
We all have them, and we all love to use them. But do you really need to use four or five different streaming services at once, on top of a gym membership you admittedly rarely use, as well as those ‘loot boxes’ you get in the mail from various companies?
It’s a lot for one budget to handle all at once! So comb through and see where you can trim the fat. Cut back by two at least, and try to be as ruthless as you can.
Credit card interest is something that stings us all in the end. A couple of small purchases, maybe a new TV or microwave, and suddenly you’re paying back ten times the amount you spent in the first place. It’s why it’s always best to pay over the minimum, and way before the term limit.
Always keep an eye on your credit limit. If there’s a problem, it might be worth it to buy a few tiny expenses (like takeaways or weekend snack runs) just to try and push that credit score up. You can pay these off easily and in no time at all.
Yes, your home, the roof over your head, could be costing you more than it should. In an economy where wannabe homeowners are the ones scrimping and saving the most, it’s easier than ever to get a bad deal when you finally do settle in. So it’s worth investigating.
Look into your mortgage interest and see if it’s too high; talk to a professional about what the rates mean for you. If need be, even consider the best ways to sell my house fast. Putting your house back on the market may not be what you want, but it’s worth considering if things are at breaking point.
Not Having Any Savings
Finally, if you don’t have savings, you could be spending money without needing to. It’s easy to fall into this trap; your account still has a good amount in it, so you feel at ease spending over your monthly limit.
But this cash should go towards a savings pot. Anything from a future college fund to an emergency fund you can use in times of crisis – as long as up to 20% of your income is put away wherever possible, you’ll be in good standing.
Money drains strike without us knowing. Check your budget now to see where they are.