We are hearing a lot lately about the term “invisible expenses”, but few know what specific expenses are included under this heading and how to detect them. Invisible expenses or phantom expenses are those that occur without you noticing, until normally at the end of the month you make calculations and appear. These are expenses that we do not categorize as important (rent, mortgage, car insurance), but little by little they are eroding our budget.
And that is the problem of ghost spending. Almost always, when making a budget, you think you know more or less how much each thing is going to cost you. But sometimes, either due to lack of time or lack of concentration, we keep repeating the same mistakes and in the end, we realize that the budget has skyrocketed. From Ferratum we give you some tips to be more aware of the money you spend.
Ask yourself if all the products and services you buy are essential
The first thing you need is to create the habit of evaluating if everything you acquire is essential or not. So you may discover that many of the products you buy later do not use them almost, that you can not avoid impulse purchases or hire services that you do not really need.
Organize the money you spend on leisure because that is where these invisible expenses are almost always left (if you eat, eat out, go to the concert …). Get some money for the weekend, for example, and do not let yourself get over it, to make sure you always have it for the end of the month.
Check each expense … twice
We always say it: monitor your movements that essential. Any change you want to make in your habits will only come from a deep knowledge of them. Or, which is the same, you can not solve a problem that you do not know. There are many apps that are used to automatically track your expenses, categorize them and make reports month by month, such as Mooverang. This way you will be fully aware of your personal finances and you will know where to cut.
Spend with head
Even if it sounds crazy at first, sometimes it’s a good idea to spend more money, because you’ll save it in the future. For example, if you have to buy a new boiler, which is a considerable investment, instead of going for the cheapest model, you can ask for a quick loan https://www.paydaynow.net/quick-payday-loans/ and buy a more efficient one. Thus, the initial investment will be amortized over time, monthly expenses will be less and almost certainly will last you longer.
Let’s do a quick exercise: what phantom expenses do you think you could do without this month? Everything is put!