If you want to enjoy more money to spend on those little extras at the end of each month, then this tip is for you…
Take fewer trips to the ATM and withdraw $20 less than you think you’ll need.
If you were asked how many trips you make to the ATM each week and how much money you withdrew from your discretionary account, would you know the answer? Do you find that your discretionary spending account is empty before you reach the end of month? No doubt you can account for where some of it goes, but often the cash in your wallet simply disappears! It’s OK you’re not alone.
To enjoy a little extra cash at the end of each month take the time to understand your current household spending habits. Who spends the most between you and your partner? Could you both reduce some of this discretionary spending?
Consider the following simple exercise. It could be quite revealing.
Spouse 1 draws money from the family discretionary account via the ATM in $100 lots. Spouse 2 draws in $150 lots. At the end of each month over a three month period they review their bank statements, add up the $100 lots, then the $150 lots. From this exercise it is revealed who spends the most each month, where the money goes and how much is unaccounted for. By considering why they withdrew that specific amount, it may become clear that these withdrawal amounts are more habit rather than necessity.
It is only when we question why we withdraw a particular amount, and wonder where the last $100’s went that withdrawal patterns can change.
What if you were both to reduce the number of times you visited an ATM or the withdrawal amount by $20 or $50? Would this new amount be enough for your monthly cash spend?
Small savings will quickly add up, and by the end of each month you could treat yourself. It could be as simple as a special night-out together, or saving for a larger reward later on. Having a common reason to rein in the discretionary spending makes household budgeting and saving more manageable, providing you options for a life of choice not compromise.
If you need help creating a cashflow or savings plan, please give us a call on 07 3251 3201 we’d be pleased to help.
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