As we prioritise the things that are important to us, you'd think the things we spend the most money on would get the bulk of our attention. That's often not the case, and recognising this is a step toward serious savings.
Photo by gerlos.
Trent, the personal finance blogger over at The Simple Dollar, says one way to figure out how to budget your time is keep a log of how much time you spend doing things you want and need to do. At the same time, track how you spend your money. Compare the lists at the end of one month and see if there are any areas where you're spending a lot of money, but not a lot of time. That's probably an area where you need to trim your spending.
For instance, if you're dropping $75 a month on a health club that you only visit once in a blue moon, that's some wasted cash right there. Instead consider channelling that money into the areas of your life where you spend the bulk of your time and, presumably, bring you the most satisfaction. Love to cook? Invest in a good set of pots and pans. Enjoy reading into the wee hours of the night? Get a comfy chair and a great book light. Over time, you may discover your spending habits are dwindling.
Quite often, areas of your life where you spend a lot of time without spending a lot of money are the areas that truly bring you the most enjoyment because you don't require a constant influx of new things to be able to enjoy yourself. I argue that those are the areas of your life that you should accentuate, while learning to let go of the areas that offer much less bang for the buck.