What's Your Junk Crap?

With the rising cost of petrol and the cost of everything else that will rise with it, I can see only 3 options.

Option #1 : Earn more money

Option #2 : Spend less money

Option #3 : Combine both Option #1 and Option #2 (the most ideal option)

Now I’m not terribly good at Option #1, but I’m even worse at Option #2.

But I gotta start somewhere. So, today I’m going to focus on Option #2 ie. Spend less money.

It’s actually easier said than done. I notice that before the end of each month, I always run out of money. Luckily for me, I always pay myself first. That means I always save 10% of my monthly income and put it into my savings account which I don’t touch. (Yes, I make sure this savings account cannot be accessed by way of ATM machines!)

But after deducting the necessary expenses like house loan, car loan, insurance, petrol, food, household bills and the like, I am usually left with a small amount to spend. From this small amount, I try to place some money into investments, and then use the rest for other spendings.

The trouble is, my spending always exceed my budget for the month. I just don’t know where I spent all those money!

According to Azizi Ali in his book, The Millionaire In Me, not knowing where your money goes is BAD NEWS! From his book, I found a method where I’m able to trace where my money goes every month. Azizi called it the Money Tracker.

Here’s a snapshot of the Money Tracker from his book.



Everyday, list down what you spend. Big or small. It can be for big items like buying a TV or small like parking charges. List down everything. Once that is done, fill up the Priority Codes.

There are 4 codes, namely:
1 – Mandatory Oxygen
2 – Essential Food
3 – Nice
4 – Junk Crap

For example, petrol and food comes under Mandatory Oxygen. It is for the things that are absolutely necessary for us to survive. Next, books may come under Essential Food if you like to read. Going to the movies and yoga classes may come under Nice. And cigarettes or clubbing may go under Junk Crap.

Of course different people have different priorities. You may like clubbing and place it under No. 2 Essential Food. Or you don’t read books, so spending money on books is Junk Crap to you! Some people are gym junkies so for them, spending on the gym’s monthly fees is Mandatory Oxygen to them.

But really, do re-think your priorities very carefully in view of the escalating expenses. I hope you don’t put clubbing under Mandatory Oxygen and food under Junk Crap! Then you surely have your priorities wrong!

Even for food, it does not mean all food goes under Mandatory Oxygen. For example eating at a lavish buffet in a 5-star hotel surely qualifies under No.3 Nice or even No.4 Junk Crap if the food is lousy.

Thanks to this Money Tracker which I started using 3 months ago (I wished I had started sooner), I am able to know exactly what I spent on. And I have managed to stop spending on those Junk Craps. You’ll be surprise how much money you can save by making use of this Money Tracker.

So, let’s not procrastinate. Identify your Junk Craps today!