Is the Cost of Convenience Putting You in Debt? | Financial Wellness

Life can get hectic and by the time we get home at the end of a long day, the last thing we might want to do is cook or go get groceries. That’s one of the reasons why convenience services are becoming so popular. Grocery and food delivery, streaming services, online shopping, and subscription platforms are all industries that are increasingly in demand.

These services can be very helpful, but if we are getting to the end of the month with more expenses than income, it’s time to look at our spending habits and honestly ask, “Is the cost of convenience putting us in debt?”

What is the definition of bad spending habits?

A bad spending habit is purchasing things that you don’t need and/or can’t afford, which includes impulse buys, subscriptions you don’t use, and those convenience fees you pay for home deliveries. 

Retail marketing is excellent, and it can make us feel like we need certain things to help ease our stress or make us feel better. Unfortunately, those items are typically short-term fixes that end up on credit cards, leading to excessive interest payments, which then drive up stress levels further, perpetuating the cycle. 

The bottom line is, if you are paying out more on these types of expenses and conveniences than you are putting toward investments for your future, then it’s time to face the fact that you’re spending too much on items you don’t really need and it’s hurting you financially. 

How do you know if you’re spending too much?

Positive cash flow available for investing in assets comes when you have more money at the end of the month than expenses. But not many people experience this because they don’t realize they have bad spending habits that can easily be adjusted! 

Developing great spending habits isn’t something that is taught in school, so we have to take it upon ourselves to get the financial education we are missing. 

That’s why I’m so glad you are here! 

When it comes to debt, I want you to know you are not alone. In the first quarter of 2024, household debt increased to $17.69 trillion! That means most people in the United States are paying out a lot of money in bills, interest payments and more.

So how do you know if you are spending too much? It is simple to see when you are tracking your finances. If your expenses – rent, mortgage, car payment, credit cards, etc. – are higher than your income, you are living beyond your means and spending too much. 

CLICK HERE if you want to learn more about debt management and how to turn bad debt to good.

Convenience expenditures, like food delivery, streaming services and so on, can add up quickly because each expense seems insignificant, but at the end of the month you can end up with hundreds of dollars in extra costs and added interest from credit card debt.

Thankfully, there are simple things you can do to control your spending habits. Getting out of debt requires commitment, dedication and a little knowhow.

How do I control my spending habits?

To control your spending habits, you need to understand your numbers. That means tracking your money. For some people, this can feel overwhelming, especially if there is a lot of debt, but remember, you can’t fix a problem if you don’t look at it. You can do this!

Here are the steps to take:

1. Take a month to track your spending habits. Be sure to include your major expenditures, like housing costs and vehicle payments, as well as the non-essential and splurge items you purchase. You might find it helpful to break the expenses down into categories, like utilities, groceries, clothing, restaurants and so on.
2. Compare your monthly income to your expenses. Calculate the difference between them to get the amount of money you are overspending each month. Then it’s time to figure out how to close the gap.
3. Analyze your purchases. Are there autopayments or unnecessary expenses you can immediately cancel. Maybe subscriptions you don’t use, streaming channels you rarely watch or those convenience services that quickly add up? Be mindful of items purchased through impulse spending too. 
4. Set your financial goals. What is your vision for the future? That is important to know, so you can align your spending and investing habits with that vision and set the financial goals that will get you there. For many, debt management will be one of the first goals, which is great! As you pay down your credit cards and other sources of bad debt, you will give yourself more money to invest in your future.  
5. Make your spending plan! I don’t know about you, but the word budget makes me shrink a little inside. That’s why I like to help people build spending plans instead. It feels better and a well-designed spending plan will help you control your spending habits and make better financial decisions. 
6. Work on your plan. Debt management, investing and attaining financial freedom can only happen when you take action consistently.

Smart spending and curbing your use of convenience services will help you get out of debt, improve your financial wellness, and attain the financial freedom you really want!

If you’re ready to get out of debt for good and transform your financial stress into financial confidence, I invite you to get my Money Mastery Financial Literacy Course. It’s an investment into your future that will help you feel more secure by walking you through the steps above, as you master your finances. 

A bright financial future is waiting for you! CLICK HERE TO GET MONEY MASTERY NOW!

“If you are ever offered the opportunity to work directly with Sharon Lechter or to be a part of her Play Big Movement and Money Mastery courses, just jump right in. She is a leader when it comes to teaching financial freedom and what it truly means to become a master of your money instead of a slave to your money. In about three months I was able to apply her mindset and money calls to action from the Play Big and Money Mastery courses and was able to pay down $70,596 of bad debt. I am so proud and feel very privileged to be her mentee. Thank you, Sharon and your team!” –Kim Mennella, CEO, Jorani Solutions, Inc.