So where is the money really? Here are some ways we can track down the missing money

1. Small money – a big expense

When we spend “small money” on completely marginal purchases, the thought is: “Well, a few shekels, we won’t feel it.” Know those thoughts? “Coffee and pastry – how much does it already cost?”, “Popsicle for children in the pool is only a few shekels”, “We finally went to the movie, how can you without popcorn in the cinema?”. Specifically, these thoughts make sense. But: The tendency of small sums is to accumulate and reach thousands of shekels a year. Yes, thousands of shekels: Families who eat out regularly spend an average of 30-40 NIS a day on buying a ready-made lunch. The cumulative amount per year is about NIS 9,000. Even “only” coffee and pastry every morning for one person costs about NIS 4,000 a year. So what do you do – don’t go out for entertainment? Of course not. Go out for entertainment but do it wisely: manage a budget tailored to your income and expenses and allocate an amount in advance for entertainment.

2. Buy what you need

Many families live in the belief that the money they earn through hard work is used for basic needs: housing, monthly bills, food and transportation.

Living in a tight financial framework also gives many families the feeling that they are living very sparingly. Family members feel that even though they count every single shekel and even though they don’t spend time or enjoy themselves, the overdraft in the bank is only growing.

However, from the experience gained from accompanying thousands of families, we have learned that while everyone defines “need” and “want” differently, we all have things we don’t really need.

Before making an unplanned purchase, check whether the reason for purchasing the product justifies buying it:

• Do you really need it?
• Do you need it now?
• Willyou useit?
• Is it worth the money?
• Is it possible to purchase a similar product at a lower price?

Once you have clarified with yourself the real reasons for your desire to purchase the product, you can make an informed decision.

3. Is every time a good time to shop?

Even when we want to pay attention to the money that “escapes through our fingers”, there will be times when we will do well and times when we will succeed a little less. So when do we tend to spend more without noticing?

The modern lifestyle and stressful schedule in which we all live sometimes cause us to make quick purchases that allow us to move on to the next task. Such acquisitions often turn out to be uneconomic.

Who hasn’t bought a beautiful outfit or an innovative gadget in order to improve mood? When we are in a gloomy mood and believe that a purchase will improve the situation, we must stop for a moment and think about whether the specific purchase will actually improve our situation or make it worse. Is the intensification of the financial problem and the emotional stress we will suffer from worth the purchase? Perhaps our ability to give up the purchase will strengthen our sense of self-control and improve our mood.

Therefore:

• Try to avoid spontaneous shopping.
• Put some thought into planning the time you spend shopping and come prepared to buy.
• Make a list according to which you will make your purchases at the supermarket or shopping center and conduct market research to compare prices before purchasing a service such as car insurance.
• Try to avoid shopping whose sole purpose is to improve mood.

4. Social or group buying

When we are in a group, we buy more. It can be going out with friends that causes us to spend unplanned expenses just because everyone else does it or just because there’s a birthday and we need to celebrate.

Sometimes the child comes home and says “everyone in the class already has” and immediately makes us consider a purchase we didn’t plan at all, sometimes we feel like purchasing an item similar to the one our neighbor bought.

The behavioral norms and purchasing habits of the groups to which we belong influence our purchasing considerations. When the expenditure is intended to address matters of ego and social status, as well as a little desire for “everyone to see how successful I am,” the money is perceived as worth less and easier for us to spend.

Stop and think for a moment, stick to what works for you. Perhaps taking a different stance from that of the group is more appropriate for you.

Do not be tempted to walk with the herd, many times it will end up in a broken trough.

5. Working with customer service centers is a job in every respect, a lot of pay on its side.

What amounts do you throw away each month when you haven’t spent time reviewing contracts with various parties? Well, that’s thousands of shekels per family a year.If you were offered to earn an additional NIS 1,000 a month working a few hours from home or from the car, would you refuse?

Referral to service centers is time-consuming and exhausting, treat this time as work time in every respect.

Each month, take the time to test your service providers:

• Your communications, cellular and internet packages.
• Bank fees – You may be able to save on proper conduct with the bank or by switching to another bank.
• The cost of credit cards and various loyalty programs, many of which you do not use at all.
• Insurance – Maybe you have duplicate insurances or ones that don’t suit your current or future needs and yet you pay for them every month.
• The fees you can save in your provident funds, study funds and pension fund.

Finally

The money doesn’t really go away on its own. You take it out without realizing it, and you can definitely change it. Conscious purchase, planning and control will lead to a change in consumption habits and strengthen control over household finance management. That’s how you’ll find the money.