Frightful Finances – Banish your Ghost Expenses

Managing your finances can feel a little spooky–especially if you have unexpected expenses that are creeping in and haunting you. Do you have ghost expenses sneaking up to go bump in the night? Eliminating unnecessary expenses can improve your financial outlook and take some of the spooks and scares out of your financial management process.

Ghost Expense #1: Unused Subscriptions

Subscriptions stack up fast–and before you know it, they can end up haunting your bank account, steadily draining your funds.  Evaluate what subscriptions are actually coming out of your account. Consider monthly costs, but don’t forget about annual subscriptions and memberships, either! Look out for these common haunts:

• Streaming services: Do you really need subscriptions to six different services? Those unused streaming services can add up to a downright scary expense.
• Gym memberships: If you aren’t actually going to the gym, have a look at your contract and how long it’s supposed to last–not to mention what it will take to get out of it.
• Box/recurring delivery subscriptions: Whether it’s a subscription that provides you with a monthly surprise box or a meal delivery subscription, make sure you’re actually using those items–and that the benefit you get from the subscription outweighs the cost. For example, if you’re getting meal delivery, are you actually using those products, or do you often throw them away?

By eliminating those unused or unwanted subscriptions, you can vanquish a ghost expense that can really drain the life out of your finances.

Ghost Expense #2: “Little Treat” Spending

There’s nothing wrong with getting a little treat every once in a while! However, if you’re stopping to get a little treat–a coffee; a pastry; a smoothie–every time you leave the house, it doesn’t take long for those costs to start to add up. Go over your coffee stops, “fun” additions to your shopping cart, or late-night browsing online. How much are those treats adding up? It might just be more than you think. Carefully evaluate that little treat spending–and consider whether it’s really benefitting you. Are you actually finishing your coffee or eating all of your pastry, or do you regularly leave most of it behind?

Eliminate a major ghost expense by removing little treats that don’t really bring joy–and consider saving up for treats that will provide more long-term benefit, instead. Of course, that doesn’t mean you have to give them up entirely! Eliminating just one of three Costa coffees a week can mean significant savings over the course of a year or more.

Ghost Expense #3: Stockpiles of Items

Do you have a stationary stockpile that will take you three years or more to get all the way through? Enough pens that you could provide enough for a full classroom? Such an extensive collection of soaps and shampoos that it would take you years to use them all? Not only can those purchases mean a financial weight that leaves a pit of dread in your stomach, they may be taking up unnecessary space or creating unwanted and unneeded clutter in your home. Commit to using the products you already have before you buy more and watch that weight lift.

Take the Fear Out of Financial Management

Financial management doesn’t have to be scary. We have put together a guide called ‘just one financial thing’ with lots more hints and tips. Instead of letting those ghost expenses haunt you, take the time to look over your current budget and spending and make sure that it’s working for you, rather than trying to control you. While ghost expenses might not be spitting ectoplasm all over your finances, they can certainly create stress and strain. Fortunately, we’re here to help. Contact us via email at mail@fhmanning.co.uk to learn more about our financial management options and how we can help you take the fear out of financial management.