Part 3: How to Budget for Product Purchases

Over the last two posts, I've covered the most basic living expenses we all encounter.

In total there are six common expense types we all need to deal with in life.

If you missed number one or two you can find them here:

1. Weekly Expenses - (Food, Fuel, Fun and Incidental expenses).

2. Non-Weekly Repeating Predictable Expenses - (otherwise known as ‘Bills'!)

Today we look at number three, one most people consider to be the most exciting:

Product Purchases

These fall into two main expense types...

A. Things that Support Your Life, e.g. white goods, motor vehicles, furniture, etc.

B. Things or Experiences you desire, e.g. hobbies, clothing, travel, recreational discretionary items, and more.

Needs vs. Wants

Remember when you first left home and realised you suddenly needed to pay for things like a bed, couch, table and chairs, and a washing machine? Not to mention the little things like cutlery, linen, and blankets? Of course, you probably weren't thrilled about buying these things, because you wanted to spend your money on the things that excited you. A surfboard, a guitar, new shoes, a night out with friends, or a trip abroad. Managing your budget effectively is all about balancing needs and wants. How can you satisfy your needs while still getting as many of your wants as possible? If your budget plan is poorly made, you have to throw everything you've got at a NEED to deal with it (NEEDS don't wait), and that means giving up the things you WANT for a while. Can you see the problem? There is nothing worse than having financial needs and no money to fulfil them with, and this is a big reason why people fall into the debt trap. Planning ahead is critical if you want a happy financial life! Having a spending plan is all about getting more of what you WANT while still allowing for the things you NEED.

Where To Keep This Money

Because these expenses tend to be less frequent and less predictable and you could easily spend more than you can afford on these items if you have no plan, you should have a separate account that is dedicated to these expenses. You might even consider having multiple accounts for different goals, hobbies, or desires to identify how much you have available for each.

How To Manage This Money?

These are the purchases that you are highly motivated to make, either because you experience pain or difficulty without these items or because you have a passion for them. You would happily dedicate funds to these all day long, but you know you have to take care of essential basic needs as well. That means ‘management' is taken care of fairly simply: by keeping this money separate from your bills money and your weekly expenses money.

Success With Money

If you think success with money is for someone else, think again! You deserve it as much as anyone else does and I have helped thousands of people achieve it, so I know you can too! If you just can't get your head around that and/or you are tired of money stress and have decided it's time to take control, talk to a Spending Planner to find out how you can break the cycle - BOOK A FREE CALL

You have nothing to lose and lots to gain. Spending Planners are non-judgmental professionals who are trained to help. A short relationship with a Spending Planner will provide you with tools and training that will benefit you for the rest of your life! The benefits will far outweigh the cost and what you learn during the process will benefit you for the rest of your life!

Join the Team

If you already have a Spending Plan and know what I am talking about you may be interested in joining the team. If you would like to have more satisfaction in your life (and more income) you might want to consider becoming a Spending Planner. To find out more about becoming a Spending Planner, CLICK HERE 


Certified Spending Planners are obviously busy people, but they're happy to spend time with you to discuss your situation, answer your questions, and create an opportunity for you both to see if there would be any benefit in working together.

Considering that most people will only request a call from a Spending Planner when they are under money stress, Spending Planners are very aware of the need to offer affordable solutions that are appropriate to their clients' situation. Their service is money-back guaranteed so if they do not feel that any of the solutions they have to offer would suit your needs they will not make an offer, but instead will suggest alternate options for you to consider.


Start living the life you desire.

Request a Free Call 1300 918 450