Finance

The Compounding of Expenses

Happy Memorial Day! I’d just like to take a moment to thank those who have served and fought for our freedom through the years. I’m so grateful for these brave men and women, who risk their lives for our great country. Hopefully the purpose of this day doesn’t get lost amongst all the BBQs and picnics. Enjoy the holiday but show some gratitude for the sacrifices others have made 🙂

And now on to the blog post:

There have been many things I’ve learned about money over the years. Some are absolute truths and others are more theory. Today’s post falls under the “theory” category but I notice this a lot and I’m wondering if you have too. Why is that expenses seem to compound onto each other, without any warning?

April was far more expensive than I had expected. I’d planned to buy a new fridge to replace my 15-year old model, but it seemed that as soon as I placed the order, money began flying out of my bank account. Sure, I’d already planned to spend a couple hundred dollars of my bonus, half of which was being donated to various charities. But suddenly unexpected expenses started popping up.

First it was the living room lamp that broke, then a lamp in the spare bedroom. That led to one of the headlights going out on my car. It seemed like one thing after another, none of which I had anticipated.

It seems as though making one large purchase caused a chain effect that lead to expenses that weren’t so much a choice but an obligation. It’s like the universe saw me spending money so it decided to keep the expenses coming. Have you noticed the same thing?

Spending Tends to Beget More Spending

It’s for this reason that I try to be really careful about my purchases, especially the big ones. I had a similar experience when I finally decided to remodel my 1970s kitchen in 2012. Only 2 months later my central air died and both the a/c and furnace had to be replaced. That was by far my most expensive year as a homeowner. Just figures that the same year I decide to do a major remodel a major appliance would need to be replaced.

Luckily the chaos in April ended with the arrival of May. It comes down to being more conscientious about every purchase and every dollar spent. Asking myself if I really need something before buying it. By being more aware and deliberately reigning in my expenses I’ve (hopefully) put a halt to the draining of my bank account.

Have you experienced or noticed the same thing? Or is it just me?

2 thoughts on “The Compounding of Expenses

  1. Yep! Once the wallet opens, all the money flies away. Keep the wallet closed and I keep my money and Murphy doesn’t bother me. I’ve got an expensive June coming up and that’s what I’ve expected. I’m holding on tight! Who knows what will come my way!

    1. Here’s hoping your June isn’t too bad and nothing unexpected pops up. Glad I’m not the only person who experiences this!

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