If – like most American consumers—your income limits your spending, you’ve probably found yourself in situations similar to the ones below:
· You’ve met friends for a Saturday of dining and shopping. You’ve had lunch at a boutique restaurant and are finding some great sales on end-of season items, but your fun is being dampened by knowing that you’re spending more than you should.
· Your teenager is excitedly planning a spring break trip with his youth group from church. You know that providing the down payment will stretch your budget thin, but it’s so important to him that you’ve decided you’ll give him the money and figure out something before the end of the month.
· You’re looking for a reliable car primarily to get you to work every day. You’ve saved for a down-payment and have found a low-mileage budget vehicle that has an excellent service record. However, you sneak a peek at the luxury vehicles online just for fun and are now thinking that if you stretch your payments out a little longer, you might be able to own a car that would move you to a new status level.
Spending too much on lifestyle purchases can cause individuals to save less that they should each month. Recently, the field of behavioral economics has begun researching why we are often not rational when it comes to spending. Even if we may not fully understand the psychological process of poor financial decisions, there are very concrete signs that we are in a financial danger zone. UT Extension says the following list can point to problems:
· Sometimes, I buy things without knowing for sure that I can afford them.
· I make spending decisions without having a set plan.
· I sometimes overdraft my checking account.
· I carry a balance on my credit cards from month to month.
· I occasionally don’t have enough money to pay bills when they’re due.
· I don’t have emergency savings or savings for retirement.
If anything on this checklist applies to you, then you need a financial makeover. This can come in the form of producing additional income, reducing spending overall, or better allotting the income you have between spending and saving. Some meticulous online research or a visit with a financial counselor can help you decide your best approach to taking control of your spending and feeling confident about your financial future.
For additional resources and information, contact Mary Parker Draper at the UT Extension office at 615-735-2900.
Fruit Tea
12 small teabags
1 ½ cups sugar
1 can frozen orange juice (12 oz)
½ can frozen lemonade (6 oz)
1 can pineapple juice (46 oz)
Boil teabags in 8 cups water for 3-5 minutes. Put sugar in large container or pitcher. Pour in tea and stir until sugar is dissolved. Add frozen lemonade and orange juice and stir until all is blended. Add pineapple juice last. If desired, add water until tea mixture completely fills your container. Stir well before serving. Submitted by Sherry Jo Anderson, Night Owls FCE Club.
