Budgeting: Is it a four letter word? Can you live within the budget you set? I've been setting my budget up for years now - the question is do I always LIVE by it? No ... if I did, my credit card balances wouldn't be as high as they are. I'm not sure what my biggest downfall is - the little things I don't really need or the big "surprise" expenses like the $1200 car repair bill, the new roof, the new heating and air unit.
Let's take a look at what
Bankrate.com says are the
10 biggest money drains. I want to see how I fair against these ten items:
1. Coffee. Otherwise known as "liquid libations". I brew my own coffee at home in the morning. Even if I did have a Starbucks on the corner, I'd rather have 5 cups of java before I leave my house as opposed to one strong cup of coffee that I had to wait in line for. However, I am addicted to Diet Mt. Dew - can't make it through the day without it. Fortunately, it's hard to find in soda machines, so I buy mine in bulk - either cans or bottles - and take it to work with me. I've computed that this alone saves me at least $1-$2 compared to those folks at work who purchase all their beverages from the soda (pop) machine. My other "liquid libation" is a healthy one - each morning on the way to work, I drink a nutrition beverage such as Ensure. I'm not so picky that store brand doesn't work for me though. So long as it's nutritious and chocolate I'm set. One chocolate drink, one banana and we call it breakfast.
2. Cigarettes. Yes, unfortunately, I am a smoker. Albeit a cheap smoker - I smoke an off-brand cigarette and I always purchase by the carton. Bankrate.com says that the average cost for a pack-a-day smoker is $1,660 per year. My cost? About $825 per year. Yay! I'm about $835 under average - still $800 too much, but at least I'm a frugal smoker. Mine is as much a psychological addiction as it is a habit also -- I'm waiting for that day when I wake up and throw them out. But, I don't smoke in my home. When I quit doing that I cut my usage in half. If I would quit smoking in my car, I could half my usage again. Slow weaning or Cold turkey, which is better?
3. Alcohol. Hmmm... $5 per beer + 2 beers per day = $3650 a year. Yikes! I'm glad I don't like beer (especially a $5 beer). I'm more inclined to a $2 margarita myself. And two margaritas at $2 per x 2 days a week equals, let's see .... $416 a year. Again, I'm under average by $3234 a year.
4.
Bottled Water. I will say that I rarely purchase bottled water. If I ever do it's because it's on sale, for a really good price and it's a multi-pack. My bottled water budget is less than $50 a year. Yours?
5. Manicures. Another item not on my list. I do my own nails. Perhaps one day when I have lots more time, and lots more money. For now, this is a DIY for me. That leaves me $1068 ahead of "average".
6. Car washes. $58 for an auto detailing package. Wow. I wonder who's paying these prices. I (too) rarely get this done. However, I used to work right next to a detail shop - for $15 I could get the outside and inside done, and have my car delivered back to me. My car is neglected of late however but my budget is liking it (even if the car isn't).
7. Weekday lunches out. I never used to eat out - I was a "brown bagger" for years. But a new job, more employees and less furnished items (snacks, goodies and drinks) has turned me into a lunch-out person. This has unfortunately increased my budget.
8. Vending machine snacks. This is something else I try to stay away from - I'd rather buy in "bulk" at the grocery store and carry my own goodies to work. Every so often however, those salt 'n vinegar chips call out to me though. At .50/bag x 1 or 2 bags a week though, I'm only about $50 into debt because of snack machines (so far)!
9. Interest charges on credit card bills. I go up and down (pun intended) on interest rates. I try to keep my credit card debit at the lowest interest rates possible. This means moving money around every so often - but in the end, it's worth it. Except for the fact that when I move money, one of those "little" credit card balances gets put into the mix. (Sigh)
10. Unused memberships. Another no item on my list. If I were to join a gym, I'd want one of those "pay as you go" membership.
So how did I fair? I'd say about 5 out of 5. I have money drainers. Now to figure out how to stop the leaking! How did you fair?
