In this instalment of #BarefootWithFrollo, we’re going to talk about Scott’s concept of “conscious spending”. Scott shares his story of how he lost all his possessions in a fire and had to start over from scratch. It’s an incredibly moving and well-written story, and one of the best chapters in the Barfoot Investor book.
When rebuilding his life, Scott questioned the need for all the things we buy in our life. As he says “Spend your $$ on the stuff you love – cut the waste.” In practice, this can be harder to do – it is easier than every to impulse buy & pay for purchases using our mobile phones and credit cards – whether we are in a store or shopping online.
Luckily, we’ve made the process easier with the first step of our budgeting feature. Frollo automatically categorises your transactions from all your accounts into Living and Lifestyle expenses. Tap on the blue Living icon in the Edit Budget screen to reveal your living expenses. In the latest version of Frollo, we even show you the % each sub-category makes up of the total living expenses for that month.
Moreover, when you’re setting up your budget, we tell you if it is over or under Scott’s guidance of 60% of your income.
So if you’re trying to work out where you can cut back on your spending:
1. Tap on a high spending month for living expenses until it is highlighted yellow.
2. Then scroll down and tap on the Groceries, Utilities and other top ranking categories.
3. Look for savings – For example, if the graph shows you that grocery spending is on the rise, then look at your last few shops and merchants and see if you used what you bought and where you can cut back. You can also download apps to help you save on your grocery shops, or try shopping at Aldi’s or somewhere cheaper.
4. Set a budget limit on living expenses for the coming month – and stick to it! The best way to build new habits is by setting a goal for yourself, and with Frollo you can additionally setup a Challenge such as Groceries vs Eating Out to help you save and keep you on track!
Lastly, if there are expenses that have been wrongly categorised, you can tap on the transaction and edit the category. And, for purchases where it doesn’t make sense to include them in the budget, swipe left and tap on Exclude from Budget.
We love the idea of “conscious spending” – and with Frollo, it’s effortless to get started and start building better spending habits.