Financial Coach Shares How To Avoid Wasting £5,000 Per Year

It sounds a lot of money doesn’t it? How on earth can anyone waste £5,000 a year?

But did you know that spending just £13.70 a day, every day on the things you can’t remember adds up to £5,000.

Just £13.70 spending on stuff each day! You know they stuff you can’t remember or recall. The takeaway coffee, the rushed sandwich when you stop for petrol, or the bar of chocolate that’s calling your name at the checkout, the parking, maybe a magazine or some stamps, or that pop to the local shops for just one thing and you never get out with change from £10?

Anything small – but it all adds up! How much are you spending each day on things you don’t REALLY need?

Or the stuff that has no impact and no long term benefit. The stuff that doesn’t add value or bring you JOY – in a Marie Kondo kind of way?

You could be investing this for your future!!

So, can you continue to afford to waste £5,000 a year?

In a recent blog What’s The Cost of Living Post Pandemic I talked about all the actions you can take to maximise your savings you may have made during lockdown and review all your current and new living costs post lockdown.

It comes down to conscious spending, not unconscious or incompetent spending. Conscious spending is the approach of knowing or deciding exactly what you are going to spend your money on. In it’s basic sense it’s about having a plan and following your plan by allocating your spending. Don’t make the mistake of confusing conscious spending with being frugal. Conscious spending is about evaluating your income and spending on what really matters to you.

Making choices and evaluating the consequences and by spending more on the things you enjoy most, you could enjoy life more while cutting miscellaneous spending costs.

Don’t get this confused with Mindful Spending which is all about getting to know yourself and what you truly want out of life, and applying that understanding to your purchase decisions. It’s covered brilliantly here in Mindful Spending.

So it’s all about evaluating the options, making decisions and having a plan and acting on your plan.

Managing our money isn’t hard – we make it hard because of all the stories we tell ourselves.

So as we edge out of lockdown and life starts to get back to what we think is normal – don’t normalise your spending. I’d recommend setting some time aside and evaluate EVERYTHING!

Every small spend, every investment, every item that debits your account – it’s so much easier now as no one has been using cash for over a year, so we can genuinely track all our spending from our current accounts.

Create a spending diary – go old school and write it down, there’s something real about writing and seeing it on paper opposed to typing it into an app or notes on your phone!

Add it up every day and be real about how much you spend every single day. EVERY SINGLE DAY!

Look at it every night, then add it up at the end of the week.

Then take a long hard look at it – get a big black marker and strike through everything you didn’t really need, bring you joy or put a smile on your face.

You’ll be shocked by what you find. I do this exercise with one to one clients and the results are always a shock.

Set a plan to complete this evaluation exercise every quarter – at least! You’ll thank me when you do!

Do this and you’ll stop wasting £5,000 a year!

If you feel you’d benefit from someone supporting you and empowering you to get clarity, be confident and take control over your finances then please get in touch and let’s chat.

Please email me and let’s chat – email me now!

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