What are your Areas of Hidden Spending?

What are your Areexpenses1as of Hidden Spending?

Every household has areas of hidden spending. You know those areas where you spend more than you think you do?  Perhaps it’s a hobby such as golf or gardening?  Or maybe it’s that you eat out more often than you originally thought?  Whatever the area of spending is, you most likely were caught a bit off guard when you first started tracking your expenditures.

As a Money for Life Coach, I have the opportunity to assist many families with their budgets.  While most everyone seems to underestimate their grocery and eating out spending habits in the beginning, the other areas of hidden spending cover a wide range.  I have seen everything from gardening to skiing, to scrapbooking, to clothes, and even home repairs.

The area of hidden spending, however, isn’t as important as what you are doing to increase your awareness of the problem and change your spending behaviors.   If you are consistently raiding your other envelopes to find money for eating out, golfing, etc, then perhaps you still have some work to do on either your spending plan, or more likely your spending habits.

If you are new to Mvelopes, you’ll probably want to make some adjustments to your spending plan every month for the first few months at least until you get all of your allocations to the right levels.  Use the Spending by Month report, or the Monthly Funding and Spending report, to compare your actual spending with your spending plan and make the necessary adjustments.  While working on these adjustments, watch for areas where you are consistently spending more than you have allocated within your plan.  These are your areas of hidden spending.   Work with your partner or family, if applicable, to find ways to reduce this spending.

-Jennifer Streiff, Money for Life Coach

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