Money burning or wasting money on unnecessary things.

Why should I cut expenses? 

The importance of a revised, Comprehensive Budget is that allows you to further scrutinize expenses. We all make little purchases here and there, but their impact on our budget can be significant. 

For instance, when I completed my first Initial Spending Assessment I saw some obvious, and not so obvious, reductions I could make. I knew I needed to cut back on take out food and quit smoking, but one thing in particular shocked me one thing in particular shocked me the amount I spend on coffee and croissants daily. 

Yes, I know the coffee example is an old one; however, it's still relevant and very powerful. 

Budget, which is why the Comprehensive Budget is so important to the planning process. 

After crunching all the numbers it became apparent that I was spending a $200 a month, or $2,400 a year, on coffee. 

I thought smoking 2 packs of cigarettes a week wasn't much. But, when I started to review my expenses, I realized that smoking wasn't just the $25 dollars a week I was spending. I was also buying gum to avoid the bad breath caused by smoking and that cost $10 dollars a week in mint gum, and I had to buy more cologne in less time; because I used more, to hide the unpleasant smell that remained on my clothes. 

Seeing the situation from this point of view, I was spending $120 a month on cigarettes and gum, not to mention that my cologne no longer lasted 3 months, if not a month.  

Annually my expenses on cigarettes and gum were $1,820 and $2,400 on coffee and croissants. 

For a grand total of $4220 annually.

Many of us spend significant amounts of our hard-earned money without even a second thought. Needless to say, $4220 got me thinking. 

Sure, I love coffee, cigarretes and gums, but the money I wasspending could be put to better use in reaching my goals. I could pay down my debt, build savings, apply the funds to my student loan payments, or add to my retirement account. 

So, I started thinking of ways to have the best of both worlds; living without coffee and cigarrates was not an option, but neither was wasting my hard-earned money to that extent.

My solution was simple; purchase a coffeemaker and the necessary ingredients to make my own coffee at home. Here’s how it worked out for me: 

• Coffeemaker: $20 (one-time cost) 
• Tumbler Stainless Steel Vacuum Insulated Coffee: $15 (one-time cost)
•  Coffee: $6 (each month) 
•  Cream: $2.50 (each week) 
•  12 Croissants in Walmart $4.98 (each week)
•  Sugar: $5 (every three months)

Since the coffeemaker, and the Tumbler Stainless Steel  Coffee is a one-time expenses, let's take it out of the ongoing cost. 

Over the course of the year, I now spend approximately $482, a savings of $1918.

As for quitting smoking, it took me a while to do it, but once I managed to quit; Not only did I save $1,300 a year, but my health improved.

I say $1300 I have saved annually; Because he continued spending $10 a week on my gum.

In total I managed to save $3218 annually. 

It really is fascinating when we immerse ourselves in the world of saving, for a better tomorrow.  

 I was able to maintain my lifestyle and contribute to my financial well-being at the same time. Obviously, each individual's Initial Spending Assessment will yield different results, but the point is the same - each person will get a broader understanding of just where their money is going.

Example Text

I regularly would pat myself on the back for my savvy shopping. 

Meaning: just because the store says we’re saving money doesn’t mean we actually are. 

The real judge is the bank account balance: does it keep getting bigger? 

That’s the only way it’s truly saving.