Cracking the facts
How much are you spending on coffee?
How much do you spend a week on coffee? Watch the video and see if you can relate to Paul’s spending habits.
How much are you spending on coffee?
How much do you spend a week on coffee? Watch the video and see if you can relate to Paul’s spending habits.
How much are you spending on coffee?
While treating yourself to a hot cup of coffee prepared by your favorite barista isn’t such a bad thing, making it a daily habit can have a significant impact on your finances in the long run.
Doing a financial audit on your expenses to separate your wants from your needs can be tricky, but with a good mindset and some self-control, you can build up substantial savings that can help get you through a rainy day or even through your retirement.
Having a clear idea of how much you spend will also help you create a practical and achievable budget. The fundamentals of budgeting are about monitoring all your financial transactions and evaluating them.
In tracking your expenses, make sure that you stay objective when assessing the worth of your purchases. If you will simply consider everything as a necessary expense, nothing will change. For example, Paul might need to ask himself if that cup of coffee is a necessity in his daily life.
How much are you spending on coffee?
You may start tracking your monthly expenses in a notebook, spreadsheet or budget calculator application. Likewise, there are free mobile applications, both for iOS and Android devices, that can do the job.
Go over the list a couple of times to make sure you didn’t miss anything, and once everything is written down, pick out unnecessary expenses, flag them for removal and tighten your budget for the recurring ones.
Tightening your budget might sound hard, but it is not impossible. You can choose to lower your consumption to lower your expenses. Switching to a lower-cost provider is also a good alternative. In Paul’s case, this may involve just enjoying an occasional cup of coffee once a week or finding another coffee shop that has a lower price range.
Establishing a budget and saving money is easier when you have the right resources and practical financial advice straight from the experts. Explore nestegg to learn more.
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