I don’t mean just taking a guess or a rough estimate. Exactly what was your personal spending last year?
It seems like an easy enough question, however I think most people don’t want to know the answer to that question.
Because it scares them and they don’t want to face up to the fact they may be spending too much.
Think back to when you were a student or had your first job. I used to eat 2 Minute Noodles and watch every last dollar in those last few days till I got paid again. I’m glad those days are long gone!
Over the years as our income goes up, our lifestyle tends to improve at the same pace. Better car, second car, more expensive wine, bigger house, better holidays, more holidays… But unless you have good savings habits or plans, it is not hard to spend all that extra income.
At the start of each year I look at the personal spending of my family for the previous 12 months. It is not always a pretty picture – it is amazing to see how some of the small things add up (or you’ve wasted money on something you thought you needed). This helps change some bad spending behaviour and make sure we are focussed on the bigger goals that are important to us like being debt free, an overseas snow trip….