In 2018, more of us are living beyond our means than ever before.
By us, I of course mean me.
Instead of walking to the train after impromptu drinks, I catch Ubers. I buy clothes online and forget to return them. I order my coffees and lunch on ‘jump the queue’ apps that add however many cents to my order with every purchase.
Every month, without fail, the money I set aside in my savings account slowly but surely makes it’s way back into my everyday account (especially during the week before payday).
I’m not alone in my overspending.
A recent study found more than 25 per cent of Aussie millennials are currently living pay-cheque to pay-cheque, Bandt reports. Mamamia also asked millennials how much money they’re saving – most said that between rent and living expenses, they don’t always meet their lofty savings goals.
In an effort to put some discipline around my spending, I came across the ‘highlighter money trick’ from financial advisor and author Manisha Thakor on Refinery29.
Basically, Manisha says the idea is to track your spending for a month, and then go through and physically highlight any purchases in your budget that didn’t bring you joy.
Anything that didn’t make you happy, you can cut from your spending without feeling like you’re missing out.
Side note – Here’s The Barefoot Investor Scott Pape’s best financial advice for women. Post continues after video.
OK, it’s at this point some of you might be figuratively (or literally) rolling your eyes thinking, sweetie, going through your bank statement or expenses each month is adulting 101.
That is true, but the thing that sets the highlighter money trick apart is that it’s about differentiating between purchases that add to your life, and those that don’t.
Depending on your savings goals and what life stage you’re in, not everyone has the luxury of trying the highlighter money trick.
If your goal is to save up for a house deposit or to start your own business, or you have a family to support, there are some expenses you just can’t indulge in.
But for those who want trim the fat off their monthly spending and stop transferring money from their savings accounts right before payday, it’s a great tool for figuring out the things in your life you value financially.
Of course, bills don’t really count because they’re a necessity, but taking a highlighter to your incidental costs might help you stop spending money on crap you really don’t need.