Why is my budget going out of hands?

Ever wondered why the credit card bill is touching the sky when there is not a single expensive item purchased on the card? Melissa Leong in the Financial Post has the answer to the question.

Where Are We Spending the Dollars?

Do you like to eat out a lot? Do you smoke or drink everyday of the week? Is shopping for clothes, bags and purses your weakness? If the answer to any of these questions is in affirmative, then you have a problem.

It is not necessary that only big purchases land up a person into debt. Everyday small trivial things add up to a big pile and that is where the problem starts. Three to four visits in a week to any yoghurt joint can sum up to around two thousand dollars for the year, and that’s actually too much. This is a very basic example of spending vices.

What are Spending Vices?

Spending money on things that are not really required and are bought out of impulse and generally the ones that we later regret buying are what spending vices are. Spending vices generally arise out of life style choices and society that we live in. The choice of having latest gadgets, shopping for brands, sporting luxurious watches and dining at the best of places are all examples of lifestyle choices.

How to Identify and Check These Spending Vices?

These lifestyle choices are the holes in the boat that cause it to sink. Thus, the best way to control them is to record them. It means listing down all the expenditures in a month and segregating them into categories of necessities and spending vices and ultimately controlling or doing away from these vices in our budgets. This is all it takes to control and take charge of money, rather than the money controlling you.

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