It’s easy to say yes to another expense without giving much thought to how it will fit into your finances.
Maybe it’s a higher car payment, another activity for your kids, or a subscription that doesn’t seem like much money.
You tell yourself, “We’ll figure it out.”
And maybe you do. You move some money around, cut back somewhere else, or use a credit card to get through the month.
But when “we’ll figure it out” becomes your approach to making financial decisions, those commitments can start creating problems.
Before long, you may find that most of your income is already spoken for, and there’s very little room for anything else.
How the “We’ll Figure It Out” Mentality Creates Financial Stress
The problem with the “we’ll figure it out” mentality isn’t necessarily any one purchase.
It’s making financial commitments without considering how they fit into everything else you’re already paying for.
Maybe you can afford another $100 a month. But have you accounted for the car repairs you’ll eventually need? The insurance premiums that come due every six months? The savings you’re trying to build?
When those expenses arrive, the money you expected to have available is already committed somewhere else.
You might find yourself:
- Moving money between accounts to cover bills.
- Using credit cards for groceries, gas, or other regular expenses.
- Putting off savings because there’s nothing left.
- Feeling stressed every time an unexpected expense comes up.
- Wondering where your money went, even though your income should be enough.
I’ve worked with people who earn good incomes but feel like they can barely keep up.
Often, it isn’t one big financial decision causing the problem. It’s the accumulation of smaller commitments that leave little room for anything else.
Just Because You Can Make the Payment Doesn’t Mean It Fits Your Budget
There’s an important difference between having enough money to make a payment and knowing whether you can actually afford another expense.
Suppose you’re considering something that will cost another $200 a month.
You look at your income and think, “We can handle another $200.”
But if your income is already going toward regular bills, debt payments, groceries, savings, and other priorities, where will that additional $200 come from?
Unless something changes, that money has to come from somewhere.
Maybe you’ll save less, put another expense on a credit card, or spend the next several months trying to make everything fit.
Before taking on a new expense, you need to know how it will affect the rest of your finances.
What We Do Before Adding New Expenses
In our family, we try to be mindful about the expenses we add.
We even have a simple rule: If we want a new subscription, we have to cancel an existing one.
My teenagers aren’t always thrilled with that rule!
It’s not necessarily because we can’t afford another $10 or $15 a month. It’s because we don’t want to keep adding expenses without considering whether they’re worth the money.
For example, I decided to work with a health coach, which added about $200 a month to our expenses.
Improving my health was important to me, and I felt it was worth the investment. But we also had savings goals we were working toward, and I didn’t want to slow our progress just to add another expense.
So before committing, I reviewed our spending plan and reduced a few other categories to make room.
I was able to spend money on something that mattered to me without taking money away from our savings goals.
That’s how we try to approach new expenses in our family.
Sometimes we decide something is worth making room for. Other times, we decide it isn’t.
Sometimes that means telling our kids no, not because we don’t have the money, but because we’ve decided to use it for something else.
Saying yes to one thing often means saying no to something else.
Making room for what matters most is really what spending with intention is about.
Three Questions to Ask Before Taking On Another Expense
You don’t have to say no to every new expense. But before committing, it’s worth slowing down long enough to answer a few questions.
1. Where will the money come from?
Don’t just look at your income or bank account balance.
Look at everything your income needs to cover, including regular bills, everyday spending, savings, and expenses that don’t happen every month.
Is there actually money available for something new?
If there isn’t, you’ll need to make a change before adding the new expense.
2. What will I need to change to make room?
Maybe the new expense is more important to you than something you’re currently spending money on.
That’s perfectly reasonable. But be realistic about what you’re willing to change.
For example, you might tell yourself you’ll skip your next vacation to afford a new monthly expense. But when vacation time comes around, will you still be comfortable with that decision? Or will you be tempted to put the trip on a credit card?
It’s worth thinking through those trade-offs before committing to something new.
And if you’re not willing or able to reduce anything else, it may not be the right time to add the expense.
3. How will this affect my other financial goals?
Think beyond the next paycheck.
Will this expense make it harder to build savings, pay off debt, or prepare for upcoming expenses?
Will it leave you with less room to handle something unexpected?
An expense might fit into your monthly income but still interfere with goals that are important to you.
The point isn’t to avoid spending money. It’s to understand what you’re agreeing to before making the commitment.
A Spending Plan Helps You Make Decisions Before the Money Is Gone
When you don’t have a clear picture of where your money is going, it’s easy to make financial decisions based on what you think you can afford.
You know how much you earn and approximately what your bills cost, so you assume there’s enough left to make things work.
But some of that money may already be needed for expenses that are coming later.
Car repairs, insurance premiums, and other irregular expenses are easy to overlook. If these costs keep disrupting your finances, it helps to understand why unexpected expenses can derail your financial progress.
Creating a spending plan helps you see where your money is going, what’s already committed, and whether there’s room for something new. Instead of trying to figure out how to pay for an expense after you’ve agreed to it, you can make that decision before committing.
Of course, creating a budget that actually works means accounting for your real expenses and making adjustments as life changes.
It doesn’t mean every month will go exactly as planned. But there’s a big difference between adjusting a plan when something changes and constantly trying to figure out how to pay for commitments you’ve already made.
“We’ll Figure It Out” Shouldn’t Be Your Financial Strategy
If you’re earning a good income but constantly feel financially stretched, it may be time to look at how much of your income is already committed.
You may not be able to change every expense immediately, but you can start making different decisions about what you add going forward.
“We’ll figure it out” might work occasionally, but it shouldn’t be your financial strategy.
If you’re tired of trying to make everything work from one paycheck to the next, financial coaching can help you understand where your money is going and create a spending plan that supports your priorities.
Schedule a complimentary consultation to learn how we can work together.
