Even though our heads know we need to save more often our hearts resist because we don’t want to cut the things that come to mind.
And for good reason, the first things that come to mind are often the most memorable or meaningful things. For example socialising with friends, hobbies and pastimes, gym or personal training.
I believe they should be some of the last things we cut, yet for some people, they are the first.
Instead we can find easier savings by cutting the forgettable spending.
One way to be reminded of the forgettable spending types is to briefly use a spending tracking app that automatically categorises your past three months of expenses. That will illuminate where to start changing your habits.
Another way is to have a separate ‘impulses’ account for all unplanned spending, with only a small allocation per pay cycle. The declining balance becomes a prompt to pause and really consider if you need that item you’re about to tap-and-go.
If you’ve been putting off getting financially healthier start now by first cutting forgettable spending. You will save more while still enjoying life.