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08-16-2011, 10:18 AM #1
Careless spending what would that be?
I heard on the radio a man say "Most families would find they make more than enough income if they would only cut careless spending"
This really caught my attention and I wondered what careless spending really is.
I feel careful with our spending.
We bought a house that was under what the bank said we could afford and way under what the relator said we could spend. We based how much on what are payments would be an how much we felt fit into the budget.
We have one car and bought it used. I feel like Hubby impulse buys but it is because he does so much research before hand knows prices ect and then jumps on the deal when he finds it. We keep the vehicle for a min. of 10 years.
We don't go overboard on clothing or anything like that.
It feel like I carefully consider everything we spend. Even the candybar at the check out.
I find it hard to believe that most families would find they have more than enough if they only cut careless spending.
So if "Most families would find they make more than enough income if they would only cut careless spending" what exactly is careless spending? or do I not understand how most families work?"Everyday as your walking down the street, everybody that you meet has an original point of view" -Arthur PBS
Imagine - Wife of 21 years to Hubby
Mom to Buddy (son 19) and Little Miss ( daughter 15)
- 08-16-2011, 10:54 AM #2
I think you have pegged "careful spending". All the things you reported are very opposite what many people do. They may be careful in groceries but will continue to lease new cars every three years. Or they may shop thrift stores for clothes but have a house that "fits the budget" but only until the ARM changes, then they are in trouble.
So many people have a general idea where their money goes but if you started getting to specifics, they wouldn't be able to answer you. Say they spend $400 on groceries, but eat out every other night. They may realize they spend $400 on groceries but not realize that another couple hundred is going out on food because they don't count it as part of the grocery bill or "food bill".
We FVers are watching, and learning to watch, where our money goes so we can change our spending habits. Reading threads about people's early budgets and asking where they can cut back are good examples of previous "careless spending" that is being changed.08-16-2011, 11:28 AM #3
I think many of us here at FV are so used to knowing our needs and understanding that we do not have to have the latest and greatest.
What I am finding interesting is seeing on the news or other shows much more bare to the bones type of suggestions to save money. Before it seemed like not getting the latte at starbucks was all that was suggested to help save money.08-16-2011, 11:44 AM #4
I would consider careless spending racking up credit cards that you cannot pay off every month, buying new cars that you can't afford, going way over budget on food and clothes etc., and generally living way beyond your income.
And yes, I am guilty of this and I kick me self in the arse everyday for the bad choices I have made. At 52 I have finally woke up and its going to take alot of careful spending to fix the careless spending.08-16-2011, 01:40 PM #5
Overbuying things. For me it's food because I like to try new things to expand our diet. Buying without thinking "Does it fit my budget this week?" Not planning for major purposes, not having an emergency fund. It looks like I spend carefully, but when I look over the actual numbers, I know that we are not being careful. Spending when you and your SO are in disagreement. We should have enough and we should have NO debt, but we do.08-16-2011, 02:29 PM #6
To me, careless spending is spending without being mindful. And it's not just buying fancy cars or big houses. A lot of it is routine - do you always just keep the same plan for your cellphone because that's what you've always had? Do you stop for a coffee every Friday moning on the way to work because that's what you do? Not saying that all spending is bad, but you have to be aware of it.08-16-2011, 02:40 PM #7
for us careless spending is being out at the park for an afternoon and not having forethought to bring our own water bottles and buying overpriced drinks at the park because we're thirsty or not packing a lunch for a road trip and buying overpriced snacks on the road.08-16-2011, 02:58 PM #8
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To me, careless spending is eating in restaurants every week, buying the 20th tube of lipstick you "must" have, coffee drinks at the expensive shop every day, putting the cost of a vacation on your credit card, etc.08-16-2011, 03:38 PM #9
To me, careless spending is buying things you don't need (sure, those jeans are marked down to only $5, but do you NEED them?), or throwing $ away by not looking for the bet deals (buying the first item you see on ebay, without looking to see you can buy it from the store for $15 less, or not looking at your insurance, cell phone plan, etc. from time to time). I also think of it as not carefully planning your spending...sure, you want that new widget, and it's 'only' $15, but if you are behind in bills, you really can't afford it!
I think you, and many others on here, are the exception to the 'norm' of careless spending. I think less Americans spend this way than they did 2-3 years ago, but I think too many still do...buying 'wants' and not 'needs', not taking the time to make sure they're getting the best deal they can. Some will never learn!Slow and steady wins the race....eventually!
Kill the mortgage! Goal: 12/2023 (looking less and less likely, but I'm not changing that date YET)
Left to go: $126,661.61
Extra paid:2015-$2909.27 + $153.54 escrow
2016-$1325.87 +$120 escrow08-16-2011, 04:13 PM #10
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I agree that careless spending can be the cause of many people having financial problems, but I wonder about it being "most" families. If you don't have enough income for the size family or the area in which you live, no amount of care will stretch the money farther than it can be stretched.
With many people on minimum wage, that realistically would not go nearly as far in DC or California as it would here in Shreveport, many under employed or unemployed, bearing the out of control medicals and fuel costs and all the other ills that affect us now, I fear we sometimes guilt trip the people who are really trying and doing the best they can on very limited means. Yes there is careless spending, and probably even most of us fall victim to it at least occasionally in small amounts, but I also think, as someone else mentioned, that the last few years have probably made a lot of people more conscious of spending, and in many cases, those who are struggling are in that position through no real fault of their own.08-16-2011, 05:05 PM #11
"Careless spending" is the reason many people come here, post their budgets, and we all get to attack it like hyenas. (laughing hysterically like them, as well) I posted my own, it was critiqued, and it has changed my life, I had no idea how careless I had become even with such a TIGHT budget.
I'd agree with the generalization of "most people" and include myself in that group. Even groceries can be considered careless spending if one is not mindful, buys in excess and wastes it, doesn't plan it well to the point they end up buying even more the next time running out for just one ingredient, etc.
My bf recently switched to buying groceries to keep at work instead of eating lunches out. When we met, he felt the $5 a day of eating out was a very low amount. Many discussions later, he realized just how far a loaf of bread can go towards sandwiches instead. My feeling was that his lunches out were "careless spending" because of the changes I've made thanks to folks on FV helping me to cut back, and he didn't see it that way for a long time and now he does. Over time, I wouldn't be surprised if he also started to view it as "careless spending" when his friends still go out every day.08-16-2011, 06:05 PM #12
Careless spending to me is mindless, unplanned & impulse spending. IE Buying prepackaged foods vs whole and doing the cutting yourself etc, knowing your kids are going back to school and not planning the $ for the much needed clothes & supplies and buying things 'just b/c' or b/c you feel 'entitled' to it or trying to keep up with the Jones'08-16-2011, 06:51 PM #13
Careless spending is not having a plan, not only where you want to be financially in 6 months, one year or ten years, but also not having a plan for buying school supplies or clothing as someone else here mentioned! I can remember when dh and I first got married my FIL pulled us aside and counseled us on how to plan for school clothing (my oldest was 5 at the time) shopping off season, etc. I didn't get it until a few years ago and four more kids later!!! now it's clearance, clearance, clearance!
Also planning meals with what you have in your pantry/freezer is a big failure of mine...when I don't have a plan I go to the grocery store 2-3 times a week and spend more than I thought I would! Having the grocery store only 1 mile away doesn't help!!! Get the whole family involved in making a meal calendar and helping you stick to it!
Another downfall has been couponing, though it does save money you have to have a plan and set limits! I recently stopped couponing, not only because its not as fun anymore but because I was having to put money out (even if only a few dollars) in order to get a "deal"...I decided that I don't need what I already have...a year supply of all the health & beauty aids you can think of, and 6 months of paper products.
You have to have a plan or you pay out more than you really NEED.
Last edited by mom2fivemd; 08-16-2011 at 06:55 PM. Reason: Add08-16-2011, 07:49 PM #14
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A few weeks ago I was talking to my sil and was telling her about something I read about on a blog somewhere that this woman was saying after looking at their buget they found and extra 3000.00 a month. She was like yea we could probably find that much if we cut out all the stuff we buy just because we want it at the moment. In just the few minutes before she was saying that every month they rob Peter to pay Paul and they could not file for bankruptsy because of her dh's security clearance at work. Well which is it are you in dire straights or not???
Believe me if there was 3000.00 extra or any amount extra in our budget I would for sure know about it and it would have a place for it to be!!!08-16-2011, 08:17 PM #15
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