% :KHQ\RXVXEWUDFWH[SHQVHVIURPLQFRPH\RX¶OOFRPHXSZLWKQHW
VDYLQJRUDQHWGH¿FLW'H¿FLWVHQGXSJHWWLQJIXQGHGE\ERUURZLQJ
DQGVDYLQJVJRLQWRDQDFFRXQWOLNHDN RUVDYLQJVDQGEXLOGXS
RYHUWLPH
% )RUWKRVHZKRGRQ¶WKDYHGLI¿FXOW\VDYLQJDQGDUHODWHULQWKHOLIH
F\FOHWKHFDVKÀRZVWDWHPHQWPD\QRWEHHVVHQWLDO%XWHYHQLI\RX
DUHGLVFLSOLQHGDFDVKÀRZVWDWHPHQWFDQSURYLGHDPXFKFOHDUHU
LGHDRIKRZPXFK\RXVSHQGDQGVDYH7KHJRDOLVWRFRPHFORVHWR
VPRRWKLQJVSHQGLQJRYHUWLPHDQGDFDVKÀRZVWDWHPHQWFDQWHOO
you exactly how much money you spend during an average month
RU\HDU
% ,I\RX¶UHOLNHPRVWSHRSOH\RXWHQGWRVSHQGFORVHWRZKDW\RX
HDUQ$OLWWOHPRUHDQG\RX¶OOVHHWKHFUHGLWFDUGEDODQFHVVWDUW
WREXLOGXSDOLWWOHOHVVDQG\RX¶OOVHHDEXPSLQ\RXUFKHFNLQJ
DFFRXQWEDODQFH,I\RXUFDVKÀRZVWDWHPHQWLVSRVLWLYHEXW\RX¶UH
DFFXPXODWLQJGHEWRYHUWLPHWKHQFKHFN\RXUQXPEHUV5HPHPEHU
WRLQFOXGHWKLQJVOLNHFDVKH[SHQVHVDQGFUHGLWFDUGLQWHUHVW
% 7KH FDVK ÀRZ VWDWHPHQW SURYLGHV LQIRUPDWLRQ DERXW EXGJHW
ÀH[LELOLW\,I\RXDUHQ¶WVDYLQJHQRXJKIRUUHWLUHPHQWRULI\RX
KDYHDWRXJKWLPHSD\LQJRIIFUHGLWFDUGGHEW\RX¶OOEHDEOHWRVHH
\RXURSWLRQVIRUUHGXFLQJVSHQGLQJ7KLVLVDOVRZK\LW¶VLPSRUWDQW
WR GLIIHUHQWLDWH EHWZHHQ ¿[HG DQG YDULDEOH H[SHQVHV 9DULDEOH
H[SHQVHVFDQEHPRUHHDVLO\FXWWKDQ¿[HGH[SHQVHV
% :KHQ\RX¶UHFXWWLQJVSHQGLQJDQHFRQRPLVWZRXOGVXJJHVWXVLQJ
the marginal utility method, in which we compare the amount of
happiness we get from spending on each item in the budget and
FXWWKRVHLWHPVWKDWZHHQMR\WKHOHDVW%XWWKHWUXWKLVWKDWZH
RIWHQ DUHQ¶W YHU\ JRRG DW XQGHUVWDQGLQJ WKH PDUJLQDO KDSSLQHVV
ZHDFWXDOO\JHWIURPVRPHIRUPVRIVSHQGLQJ6RZKHQ\RX¶UH
deciding what to cut, be honest with yourself: Does spending that
much money each month really make you that much happier?