It’s hard to imagine that anyone could ever have “too much” money. At least most of us can agree that is not our problem. But even when our income increases a little – through overtime payments, a raise or a bonus – we frequently don’t see any improvement in our financial situation. The extra money just seems to be absorbed by our expenses and disappears.
This disappearing money may be caused by SPENDING LEAKS.
Many personal spending habits can lead to spending leaks, including:
- Impulse buying
- Buying on credit and paying interest
- Lack of self-discipline for saving
Stop spending leaks by asking yourself a few questions before you buy:
1. Is this a need or a want?
2. Would I buy this item if the price were 20% more (the extra you will pay in interest for using credit)?
3. Where will this item be in 6 months?
What are your spending leaks? Comment below…we won’t judge!
See Lesson 3 for more pointers about plugging spending leaks.
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Author: Polly Loy, M.S., Extension Educator, Family and Consumer Sciences, Belmont County, Buckeye Hills EERA, loy.1@osu.edu
Reviewer: Kristen Corry, M.S., Extension Educator, Family and Consumer Sciences, Monroe/Noble Counties, Buckeye Hills EERA, corry.10@osu.edu