You may have already anticipated what Expense type number 5 is. After you’ve called the repairman to come and fix your washing machine 5 times in the last year he is very likely going to say to you, “Sorry, it can’t be fixed this time. It’s time you bought a new one.”

So, Expense Type number 5 is the Replacement of Things.

These are long term expenses that occur over a much longer time frame, so they are way too easy to overlook. Too many people get the news that they need to buy a new appliance or a new car, when they are not prepared for it, and it causes them financial stress. Way too often this leads to the use of Credit, which potentially leads to a financial downward spiral.

If you bought all new things when you got married and then after a few years kids started arriving, it’s no wonder people talk about the seven-year itch, referring to a common point in a relationship where the romance flame dies and break-ups occur.

It’s no coincidence that this would also be around the same time as the repair bills are getting more frequent and the cost of replacement of all those household items is beginning to kick in. Income has dropped due to maternity and child care and the expenses have gone up as a result of the growing family. It gets really tough!  When debt comes in the door, love goes out the window!

So what we are looking at here is huge! It’s more than just a money issue!

People who ignore Expense Type number 5, Replacement of Things, and who spend all they earn week in week out, with no savings at all, are not just at risk of falling into money stress, they are guaranteed to experience it! And given that people are now way less likely to hang around and tough it out when things aren’t going their way, than they were in previous generations, this is critical.

Nobody deliberately has money stress and nobody wants relationship breakdown!

It happens because we have been enticed into wanting more, spending more and having more, with no thought for what comes next! Nobody has been talking about how and why this just does not work.

So how do we fix this?

It was my first refrigerator dying that taught me. When I bought the next one I immediately started planning to purchase the one that would come after that.

A new refrigerator that costs $1,000, should last at least 10 years. That’s $100 a year which is roughly $2 a week.

If you wait 5 years before you start saving for the next fridge, that $2 becomes $4 a week. If you wait 9 years, it becomes $20 a week. If you wait till the fridge dies, it’s $1000 that you don’t have, and you need it this week!

The longer you wait to take control of these longer term expenses, the more they cost each week to deal with them. The sooner you start putting money aside the less it costs each week. This is where a Spending Plan is just brilliant!

You can factor in all of the things you will need to replace, giving them a current age and replacement value, and you are on your way out of money stress! Compare 10 new things that need only $2 a week to be allocated as part of your Spending Plan and 10 aging things that need $20 a week in a catch-up plan, and I think you will get the picture!

Now you know about this, please do not ignore it! It’s critical. If you want a happy life, it won’t come from buying more stuff. It will come from making sure you have a plan to look after the stuff you have.