It's difficult for us to save money when we're not even sure where we're spending it. According to a survey done by Visa, we spend an average of $21 a week that we cannot account for, which adds up to about $1,000 a year. Compare that with young adults between the ages of 18 and 24 who say they easily misspend an unaccounted $2,500 a year. So, where does our petty cash go?
According to the survey, most adults found the 'mystery money' was spent most often when shopping for food and other groceries, while a third of us cannot account for spent money when enjoying a night on the town. One quarter felt that dining out caused them unexplained expenditures.
Regardless, consumers are still losing track of a considerable amount of money each year. Worldwide, the average person is unable to account for 20% of their cash spending which is being blamed on leisure spending, especially when out with family and friends during holiday seasons. Last minute shopping stress is being credited for the over-the-budget purchases and impulse buying is a key factor when it comes to all consumers. There are several ways to prevent those impulse purchases:
The best defence to avoid unwanted purchases is to order online. With internet shopping as common as department store shopping, it's easy, convenient and eliminates those impulse 'standing-in-line' purchases. If you have enough time, you can always buy your item through auctions sites such as eBay.
Writing down the names of the people you need to buy for and the maximum amount you can spend on each gift will also help control the petty cash flow. If you are shopping during a major holiday season and will not be seeing these people until afterwards, perhaps waiting to shop is an idea. You will most likely be able to make your purchases with considerable discounts during December and January. At the same time, it is necessary to avoid buying something just because it is on sale.
Another way to avoid petty cash blunders is to give a magazine subscription as a gift. Annual subscriptions generally offer much steeper discounts than buying off the shelf every month. A wrapped magazine with a note of an annual subscription is thoughtful and eliminates the urge to spend on items that are not on the list.
There are many ways to avoid unnecessary purchases and keep track of that annual $1,000 in lost cash. Keep track of your spending habits and you'll be shocked at how much can be saved.
Author Resource:
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