Are you happy with where your money goes? If more of it seems to disappear than you can account for — or than you would like — you may have some financial leaks that need plugging.
Like a dripping faucet, a little bit of money leaking out in dribs and drabs may not seen like much at first, but it can add up to a shockingly large amount over time.
And no, I’m not just referring to the infamous latte factor.
Finding those leaks
Your “leaks” could be anything from a constant stream of school projects or hobbies that require regular infusions of money, to cable TV packages that you never watch.
Leaks are areas — big or small — where your money goes without you really paying attention to it.
Of course, identifying those areas is the first step to plugging the leaks. How do you find them? Look back over your recent bank and credit card statements for things that repeat regularly.
Once you’ve found the potential leaks, see if you’re still getting value from them. If not, cancel away or make adjustments.
If you’re not sure you’re ready to cancel a particular service, trying putting it on a temporary hold to see what it’s like. Chances are, you’ll find that you don’t miss it nearly as much as you thought you might.
For example, we got rid of our home phone service and were pleasantly surprised at how much nicer it is without it. As a bonus, we now paying about $240 less a year to no longer be annoyed by telemarketers. So that was definitely a leak that we happily plugged.
As a bonus…
Sometimes, too, you there are ways to save that might actually leave you even more satisfied with what you’re getting.
In the process of getting rid of our home phone service, we increased our internet download speed — which means we can now watch Netflix at the highest quality without issue. We ended up with more of what we actually use, less of what we don’t, and a lower price.
Once you’ve got those financial leaks plugged, you’ll be surprised at the extra room in your budget.