Where does your money go? Yes, you can track your money and see where it goes. However, there is a difference between spending you need to do and spending you don’t.
My money sinks are groceries, gifts, and anything bought at thrift stores or yard sales. Now, groceries are essential. However, extra groceries are not always essential. I could do a lot more cooking from the pantry or from leftovers. But sometimes I feel inspired to make a certain thing or have a specific snack, and off to the store I go. Thirty dollars later, I’m done. It is so easy to justify spending money on food.
For me, gifts are another money sink. I don’t love getting gifts nearly as much as I love giving them. I purchase birthday gifts months or years in advance. I get gifts for just-in-case. While many of these are totally suitable and wonderful and purchased at craft sales or even thrift stores, I do tend to spend too much money on gifts.
Thrift stores are the other money sink for me. I love clothes but never want to drop hundreds of dollars on a shirt, but I will gladly spend ten dollars on a great jacket. The thing is, I might not really need the jacket, but it’s beautiful and it’s ten dollars, so into my home it goes.
Luckily for me, none of my money sinks costs me thousands, but they could easily go into the hundreds if I didn’t control myself. I do of course, because I have a limited budget like everyone else.
What are your money sinks? You may find them in an area of your budget that seems large and out of proportion. Then again, you might find them by simply asking yourself what you love buying and can justify buying again and again. You see, we need to renovate our kitchen and that could easily become a money sink. However, I don’t want to buy large quantities of kitchen items, and I can’t justify that. Used clothes, gifts, and snacks I easily justify to myself, and it’s that justification you need to watch for as you get your own spending under control. Set a limit on the money sinks, and you begin to plug the holes in your budget.