Susan Hayes, The Positive Economist, identifies four ‘invisible’ holes in your pocket!
1 Direct debits
These are a salesperson’s dream, your authorisation for them to dip into your account regularly! No wonder they tout ‘special’ offers to get them. You sign on the dotted line and, within a short time, it’s gone out of your head, so you just let it ride.
Remedy: Check to see what exactly is leaving your account every month: A subscription to a gym you haven’t seen since 2nd January? Payments for TV channels you never watch? A mobile phone package that doesn’t suit anymore? Of course companies make it difficult to change by placing all kinds of obstacles in your way, but be persistent. It’s your cash.
2 Casual eating and drinking
The groceries bill is one thing, and we also have the odd fancy restaurant meal or a Friday night on the town, and these we budget for. But what about convenience eating? The lunch you buy because it’s easier or quicker? A coffee when in town? Late night chips on the way home? Some of this is impulse-buying but much stems from lack of planning.
Remedy: (a) Curb your impulses – it’s better, financially and health-wise, and (b) Plan a bit: make four portions of Spag Bol and freeze them for those ‘lazy days’, or have lunch before going shopping so you won’t be tempted by all those sumptuous cafes, or get up twenty minutes earlier to make breakfast instead of grabbing a sugary muffin on the go. Food budgets can be far lower if we implement small changes.
3 Work-related costs (with apologies to the 450,000 unemployed people to whom, unfortunately, this doesn’t apply at the moment.) But for the remainder:
How do you get to work? Do you buy lunch and other things that you wouldn’t at home? What about donations towards workmates’ birthdays, retirements, transfers, Christmas, etc.?
Remedy: Could you consider cycling or public transport or car pooling? Better still, could you actually work from home? And those ‘at-work’ costs? Identify them and try to cut them down, e.g., bring a lunch, like your Mam told you to. For workplace ‘occasions’, suggest that somebody makes a cake and all sign a card instead of putting money towards a gift. It’s the thought that counts and believe me, your (paying) colleagues will appreciate it!
4 Habits
Can’t imagine watching TV without a beer or a glass of Chardonnay? Or reading a paper without coffee and a Danish? Or buying a sandwich without a bottle of water that just keeps rolling under the brake pedal for the next fortnight? It takes about 21 days to develop a habit that becomes ingrained in the subconscious.
Remedy: Write down every cent you spend for one week; your costly habits will jump off the page at you.
