Something might be killing your budget. Do you know what it could be?
Here’s a breakdown of where the money’s going per an article on Business Insider read here.
Top 3 categories:
- 32.9% – Housing
- 15.8% – Transportation
- 12.6% – Food
According to this article, if you are spending 30% of your income on housing, category # 1, you are at great risk of being unable to afford other necessities. YIKES!
Category # 2 – Transportation. The average monthly car payment on a new vehicle in 2017 is $479. Gulp! The average car loan is $30,000 with an average length of 68 months with interest rates around 4%.
Food. No surprise there. From 2015 to 2016, Americans spent more in bars and restaurants than on groceries according to this article on The Motley Fool. Most food establishments charge a 300% markup on items they serve. Meaning if you pay $15 for a meal, it actually costs $5.
So what is the bottom line here? How is the helpful? It is just perspective. So many things we have come to accept as normal, like eating out, are not normal. They are actually killing us financially. There I said it.
So what can you do about it?
It is really simple, but hard, because it isn’t anything you don’t already know. I get it. I really get it. What I want to tell you is the solution is never at the level of the problem. I know that sounds fancy, and it should be, Deepak Chopra said it.
IF we know what we should do with our money, why don’t we? I teach Dave Ramsey’s Financial Peace and I am always interested to know WHY people do what they do. Here were, and still are, some of my “Why’s”.
I don’t want to. I want what I want. I deserve it. I feel like it.
Here is what some of my students have said:
There is always tomorrow. There is time to save later. I didn’t have a budget so I really didn’t know where the money was going. I wasn’t paying attention to the money. I didn’t know. OUCH! (That one hits me in my gut and the reason WHY I write this blog).
So, what can you DO?
HOW can you change your future?
- Be kind to yourself. You are not alone and you are READING this -KUDO’s to YOU for that!!
- We are here to HELP. I am telling you I was in fetal position on my bed in our 2nd home as a married couple CRYING. I wanted to go to the MALL and when Bill asked me if I had the cash to go, I said I didn’t know and he said: “looks like you’re not going”. Then I cried some more.
- Create a budget if you haven’t already. HERE is a link to my post on budgeting with a budget template for you to get started!
- Look at each category where you spend and see where you can cut back.
- Get a part-time job to either pay down debt or put some cash aside for an emergency fund.
- Set a goal. When you achieve “x” then you can earn“y”. It can be a vacation, a dinner, a family outing, a new pair of shoes. When you have skin in the game, the game is a lot more fun! I wrote this post on being intentional. Check it out. Here is another post on Reaching Your Goals in 10 minutes a day!
- Sell something. To raise money quickly, sell whatever you’re not using. Here are some great ideas from Natalie Bacon, one of my favorite bloggers.
- Look at your housing and your transportation. I once met a fellow that my husband and I mentored. He made $40,000 a year and his car payment was $700 A MONTH. I almost lost my mind. It is the same or more as RENT. Geesh I am getting worked up just thinking about it!
- GET SUPPORT. Find like-minded people to support you on your journey. Join a FB group. You are NOT alone. This I can promise you. There are lots of people out there just like you and me that have a dog in this fight.
- Watch what you are spending and ask yourself “do I really need this?”. At Target the other day there was a buy one, get one 50% off sweater deal. My daughter found one sweater she loved, but could not find a second one but felt compelled to buy one anyway. What I said to her was “Do you need to spend another $10 on something that you don’t love or can we give that $10 to a cause we believe in? Or save it to put toward something else you’d really love?”
I know, I know, I know. This stuff is obvious, yet so hard. I get it. I really do.
Always in your corner cheering the loudest!!
Karen & Bill