Week 3

Stop Spending Leaks

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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

Week 3

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This week in Lesson 3,you will see if there are any “leaks” in your spending. By changing just one habit, your money can be better used to help you reach a financial goal that is important to you.

Spending $1-$20 less a day on average can add up to somewhere between $365 and $7,300 a year (Imagine having $146,100, plus interest, in 20 years!). Habits can add up to big costs. Our video gives a great example of how quickly spending leaks can add up. 

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Author:  Kristen Corry, M.S., Extension Educator, Family and Consumer Sciences, Monroe/Noble Counties, Buckeye Hills EERA, corry.10@osu.edu

Reviewer:  Polly Loy, M.S., Extension Educator, Family and Consumer Sciences, Belmont County, Buckeye Hills EERA,  loy.1@osu.edu