If you are the type of person who is always broke a day or two before your next payday, then you are one of the millions who have fallen into the many money traps that suck your budget without you even realizing it. It is very easy to fritter money away on daily expenses, but why is it so hard to create a simple monthly budget?

We all have expenses that uses up our monthly paycheck. Starting a budget do not really have to be that hard. You can start off by listing all the things you purchased the previous month. You would be surprised on how long your list could go. Tired to start off even with a list? Open your credit card statement. This is where the next step of your budget begins.

Try taking a closer look at your list and try to analyze every detail, thinking twice if it is something you truly need (like your food, car payments, utilities, gas, kids’ school payments, insurance premium), or is it something  you purchased out of a whim but realized you didn’t really need it, or is it among the stuff you shopped the day you were depressed and wanted to splurge to ‘feel better’? Is it something you think you would die if you can’t have everyday (like some people do with Starbucks’ coffee, see article) but is actually something millions of people out there can do without?

With that, you can split your list into two: your necessities and your money-drainers. You might not know it, but the popular money-drainers on your list could equal to your monthly living expenses. Among the popular Money-drainers include:

Coffee – Like mentioned in this article, coffee do not have to cost as much as $5 a cup. If  you make it from home it won’t even cost you a dollar. Let us say, Starbucks isn’t your brand, and you buy from this coffee shop at the corner for $3.50 per cup. At roughly 260 weekdays per year, buying one coffee every weekday morning could cost you close to a thousand dollars. That kind of money pretty well cover a huge part of your home loan. Just imagine if you go for the more expensive brands.

Alcohol and Cigarettes – How much is a pack of cigarette today, or the bottle of your favorite beer? And how often do you smoke or drink? A simple math will tell you how much all that money could add up to. You known that’s definitely not chump change.

Bottled Water – This bothers me, really. Is it that hard to fill a small thermos or covered tumbler with water from your fridge? Why do a lot of people have to take that extra trip to the convenience store and buy bottled water? Though there are tons of brands you could find that is cheaper than the other, a 20 ounce bottle would still cost over a dollar. In a year, all the money you spent on bottled water could have paid off your car insurance for at least a couple of months. Not only it costs you much, it costs the environment plenty too.

Interest Charges on Credit Card Bills – Credit Card have become the convenient way of shopping for the products and services in today’s modern world. But credit card companies charge interest if the outstanding balance is not paid in full every month. Many people would tell others to pay their bill on time and in full to save money and they are actually right. It is the only way for you to save money on interest charges. If you pay only a 2% minimum each month, your debt would probably last longer than most marriages. Paying your credit with ever-so-little amount could translate your $1,000 debt into a 22-year commitment — and that you’ll accumulate thousands more in interest in the meantime.

Look around, there’s more.

What are those unused memberships doing lying around? Monthly service fee at gyms run around $50 a month. With that, an unused gym membership could cost you over $500 in a year. Have you thought about your weekday lunch outs that is becoming too frequent? Why not alternate it with something you pack from home. Do your carwash and manicure if you can. Gift cards could be very popular in the list (see article). Is your magazine subscription that necessary? Is your phone plan cost-effective? Or you can do better with a lower plan? How about rushing to every store that has a “Sale” sign hung to its window? Do you remember the time when you brought 3 sweaters in a day just because they’re 50% off, only to shove them at the back of your closet and forgotten forever?

It might surprise you how much longer your list of money-drainer is compared to your necessities.  Let us add all the money you spent for your hobby. Add all the expenses and total it below the list so that you can see how much you spend on unnecessary stuff. You will probably be shocked to see on how much money you waste every month, and every entire year. Don’t you feel bad on how much you could have done with that kind of money? You could have paid off your entire mortgage by now. Start your making your own list so you’ll be aware of your own money drains, start avoiding them, and hopefully pocket the savings for something more useful.