A while back I had an interesting conversation with a neighbor about all the unnecessary spending and expenses people tend to have today. Many weren’t around years ago. It’s the type of convenience spending such as the exterminator service. Everyone is doing it, you sign up and then 6 months later you’re asking yourself why you’re paying for it. Our parents’ budgets must have been much more simplified for managing expenses.
There are many new services and new technologies that can increase the expense side of your monthly budget. People are faced with these spending temptations which often provide convenience and seem like needs. But are they really that convenient, or just weighing people down financially?
So, what types of expenses am I talking about? In taking a look at our current and past expenses I’ve come up with a short list. Perhaps you can think of more.
- Exterminator services that stop in every 3 months to spray for bugs
- Online services and subscriptions for websites
- Home security (built in alarm systems)
- Cell phones
- Cable or Satellite TV
- Internet
- Yard care such as fertilizer and chemical treatment
- iPhone apps , digital movies, music, TV
- Vehicle bells and whistles which drive up the overall price
- Monthly vehicle services that enable someone to locate your car if stolen
I suppose many of these things are related to technology, but not necessarily all of them. Isn’t it interesting how we get locked into the contracts and agreements that hit our checking account each month?
Initially, such things seem like a great idea. As time goes by, they become a need versus a want or convenience item. When someone passes through their budget looking to manage andcut overall expenses, these things are often passed over because they’ve become engrained into our lives.
How do you manage personal expenses by cutting unnecessary spending?
You need to first identify the expenses. Have someone review your budget with you and give them the freedom to ask a lot of why related questions. Why are you spending money on X? Obviously, it’s best for this person to be someone you can trust and who is a good money manager.
Next, prioritize these expenses. Obviously, they pale in comparison to shelter, food and electricity. But, give them a category of their own and prioritize them within. Which ones are at the bottom of the list? In other words, if you were laid off from your job today which would be the first ones to go? Remove those items by getting out of contracts, etc.
Finally, review your list regularly. Make sure you’re not overly tempted with the latest service offering or technology. Avoid chasing after the same things as friends. My neighbor and I decided that spraying for bugs around the house could be just as easily done as the exterminator who sprinkles his magic dust every few months. 
What do you think about such expenses? Would you add any to this list? Are they overcoming your budget?
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