Spending habits questionnaire
Another exercise that will help you identify spending habits is the Spending Habits Questionnaire. Consider the following issues:
- What are your needs and wants around money spending?
- What can you survive on?
- What is needed for one person is not needed for another, how does this impact on a family budget, and what changes are needed to save money?
- Do you need a car? Can you ride your bike?
- Do you have prescriptions that are necessary?
- What do your kids need and what do you do when your budget is tight?
Improving your spending profile
Now is a good time to write down how you might improve your spending profile in preparation for going into post-secondary studies.
List the changes and timelines around these changes in spending habits.
Consider the general changes and timelines needed, and explore the mind shift that needs to take place. What is your lifestyle now? Will it be easy to shift? Are you already living on a shoestring?
Does it make sense to combine outstanding debts into one payment, for example, obtaining a bank loan to amalgamate all credit/bank loan debts?
Spending habits are important and need to be considered when planning to finance your education. When one is going to school, whether on a part-time or full-time basis, it has a dramatic impact on earning power, so it is crucial to be able to identify, monitor, and adjust personal spending habits and to master money.