Most of us have a budget of the things that we pay for. However, that's not the same as things that cost us money. If you're trying to improve your budget, start including a section for the things that cost you in areas like productivity, health or time.
Picture: Australian money photo by Shutterstock
As business blog Inc. points out, this concept is often applied to companies looking to optimise their bottom line. Undertrained employees, for example, can cost the company in productivity. One well-trained employee can do in 10 hours what a poorly trained one would take 20 to do.
You can apply this concept to your daily life as well. If you're driving to or from work for ten hours a week, see if you can take public transport so you can at least use that time for something productive. If you're spending too much time cleaning your home and not enough with your kids, maybe hiring a house cleaner could be worth the monetary cost.
Of course, this concept can apply directly to your finances as well. Every month you're not saving is money that you can't put towards investments that can eventually be worth a lot more. Even saving $5 a week is better than nothing, as you've probably heart countless times before. While having that space in your budget feels better at the time, the real cost of that $5 is higher down the road.