The Six Reasons We Spend Money – Part 3


Over the last two posts I’ve covered the most basic living expenses we all encounter.

In total there are six types of expenses we all need to deal with in life. Today we look at the most exciting one; number 3!

If you missed number one or two you will find these at my blog as follows:-

1. Weekly Expenses – (Food, Fuel, Fun and Incidental expenses). You can read all about this one at

2. Non-Weekly Repeating Predictable Expenses – (Otherwise known as ‘Bills’!) You can access this one at

Now for number three:-

3. Product Purchases.

A. Items that Support Your LifeE.g. White Goods, Motor Vehicles, Furniture Etc

B. Items or Experiences you desire

E.g. Hobbies, Clothing, Travel, Recreational discretionary items.

Where to keep this money?

Because these expenses tend to be less frequent and less predictable and you could easily spend more than you can afford on these items if you have no plan, you should have a separate account that is dedicated to these expenses. You might even consider having multiple accounts for different goals, hobbies or desires to identify how much you have available for each.

How to manage this money?

These are the purchases that you are highly motivated to make, either because you experience pain or difficulty without these items or because you have a passion for them. You would happily dedicate funds to these all day long but you know you have to take care of essential basic needs as well so ‘management’ is really taken care of by keeping this money separate from your Bills money which was number 2 and your Weekly Expenses money (number 1).

One of the biggest reasons people have difficulty with money is because they don’t have a system for controlling their spending on this group of expenses and they don’t foresee or plan ahead for when they need items from group A.

There is nothing worse than having financial needs and no money to fulfill them with and this is a big reason why people fall into the debt trap so planning ahead is critical if you want a happy financial life!

Succeed With Money Workshops

This new workshop is a great way to get on top of your finances and experience success rather than frustration.

With the end of the year fast approaching, Christmas and holidays are not far away. If you want to really have a different experience this year with money being your companion instead of your restricting factor these workshops are a great way to make a change for the better.

Details and dates have been posted on my web-site at

The Succeed With Money workshop is an awesome full-on day guaranteed to give you the tools and information to go home and make real change in your day to day finances (and I do guarantee you will get results).

Just one of the things we will be doing on the day is using the Simply Budgets software to plan for the third type of expenses I spoke about above and we all want as much of this as possible!

You will get far more than you think is possible or expect when you attend one of these events. I deliver really powerful information in down to earth easy to understand language with a bit of humour thrown in for good measure.

 If you think success with money is for someone else think again! You deserve it as much as anyone else does and I have helped thousands of people achieve it so why not you too?!


That’s all for today. Keep an eye out for the next installment when we will start looking at the second half of the 6 reasons why we spend. These are the ones we overlook that cause us grief so don’t miss these!