Do you have a budget? Everyone says it is the best way to take control of your spending. Once you have spent your allotted amount for food, or gas, you’re done. Unfortunately it doesn’t always work like that.
I read a study recently that said that people who have a budget can spend as much as 50% more than they were planning. This is said to be because budgeting starts in your mind. You are thinking constantly about what you can and cannot spend and that is what causes you to spend more.
Many people who say they have a grocery budget also say they go over it almost every time. The reason behind this seems to be a fixation on quality. We figure out what we can spend without really thinking about what we are willing to give up. We may think it’s the extras that eat up our budget when really it’s the quality of the food we insist on rather than that extra package of cookies.
If your family will not eat generic ketchup or macaroni and cheese then there is no place for them in your budget. If you budget without thinking about what you are really going to buy, you will spend more.
The same goes for large purchases. Let’s say you set aside a certain amount to buy a new television and then take that money to the store. Once at the store you find out you can’t get all the bells and whistles you wanted for the amount of money you budgeted. Are you going to buy the less deluxe model or fork out the extra to get what you really want? What you should do is go home, save the rest and come back, but most of us don’t. We are already at the store and it’s only $50 more so we pay it.
This doesn’t mean you shouldn’t budget just that you need to be more conscious about it. If you have a certain amount for food, instead of thinking about what you can do without, think about what you can stretch. You are going to buy the same brands you always buy, so instead, think about how to get more out of them.
Also keep your goals in the front of your mind. Are you trying to get out of debt? Save for a car repair? Whatever it is, keep that front and center. Blowing the budget won’t be so tempting when you know it will delay something you really need.