This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Explore your spending habits to change them
This exercise will help you learn about your spending habits and the categories that consume most of your resources.
The following categories are the top 15 typical categories for American households:
Housing
Transportation
Personal insurance and pensions
Healthcare
Groceries
Entertainment
Restaurants and meals away from home
Cash contributions
Apparel and services
Education
Miscellaneous
Personal care
Alcoholic beverages
Tobacco/smoking products (e.g., cannabis and vaping)
Reading
Pets (Bonus)
Technology: phone, wifi, tablet (Bonus)
Taxes (Bonus)
What’s On The Chopping Block This Month?
After completing the exercise, notice how much you allocated to savings and investments, where you overspent, and bought stuff/experiences/food you didn’t need or use (you might even want to return some stuff).
Questions To Ask After Completing The Exercise
This exercise teaches you where to make budget cuts and better understand your spending habits. To do that, there are some questions to dive into:
Did you spend more than you made in the timeframe?
Did you end up returning anything?
Did you spend more, less, or the same amount you usually do when you have more restrictions on your spending?
Are you satisfied or unsatisfied with how you utilized your money?
Which category consumed the most financial resources? Which category came in second?
Were any of your purchases impulsive or emotional?
Was there a specific time or day you tended to spend more money?
How much money did you allocate to savings and investments?
After answering these questions, reflect and adjust your spending as you return to your regular budget.
For some people, this exercise won’t change their spending habits because they are dedicated to their budgets and financial goals. Others might lose all sense of control and conduct a series of impulse and non-essential purchases.
We Are Wired To Consume
You’re an outlier if you’re thoughtful about your purchases, utilize a budget, and don’t spend more than you earn. American culture teaches us to spend our money and live with debt. Living with debt has become normalized; now, we are comfortable owing someone money for the rest of our lives.
The question is, why are we so comfortable being financial slaves to the wealthy?
Learn the art of holding onto your money when you receive it instead of letting it go right away. You’ll not only expand your net worth, but you will also avoid being weighed down by materialism and debt.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.