We Earn Well, So Where’s the Money?

The feeling that the money we worked hard to earn this month simply “slips through our fingers” is familiar to many of us. These vague expenses, small purchases we don’t factor into our daily management, often accumulate into significant amounts.

So where does the money actually go? Here are several ways to track down the missing funds.

1. Small Money, Big Expense

When we spend “small amounts” on completely marginal purchases, we think: “Come on, it’s just a few shekels, we won’t even feel it.” Sound familiar? “Coffee and a pastry, how much can that cost?”, “A popsicle for the kids at the pool is just a few shekels”, “We finally went to see a movie, how can we skip the popcorn at the theater?” In isolation, these thoughts make sense. But here’s the thing: small amounts tend to add up and reach thousands of shekels per year. Yes, thousands: families who regularly eat out spend an average of 30 to 40 ₪ per day on purchasing prepared lunches. The cumulative annual amount stands at approximately 9,000 ₪. Even “just” coffee and a pastry every morning for one person costs about 4,000 ₪ per year.

So what do we do, stop going out for entertainment? Absolutely not. Go out and enjoy yourselves, but do it wisely: manage a budget that fits your income and expenses, and allocate an amount for entertainment in advance.

2. Buying What We Need

Many families live with the belief that the money they earn through hard work goes toward basic needs: housing, monthly bills, food, and transportation.

Living within a tight financial framework often floods many families with the feeling that they’re living in great austerity. Family members feel that despite counting every shekel and despite not going out or enjoying themselves, the deficit in the bank only keeps growing.

However, from the accumulated experience of supporting thousands of families, we’ve learned that while everyone defines “need” and “want” differently, we all have things we don’t really need.

Before making an unplanned purchase, check whether the reason for buying the product justifies purchasing it, and ask yourself:

• Do I truly need to purchase this product?
• Do I need to purchase this product now?
• Will I use it?
• Is it worth the money?
• Can I purchase a similar product at a lower price?

After you’ve clarified with yourself the real reasons for wanting to purchase the product, you can make an informed decision.

3. Is Every Time a Good Time for Shopping?

Even when we want to pay attention to money that “slips through our fingers,” there will be times when we’ll do better at this and times when we’ll succeed a bit less. So when do we tend to overspend without noticing?

Modern lifestyles and the hectic schedules we all live with sometimes cause us to make quick purchases that allow us to move on to the next task. Purchases of this type often turn out to be financially unwise.

Who hasn’t bought a beautiful piece of clothing or an innovative gadget with the goal of improving their mood? When we’re feeling down and believe that a purchase will improve our situation, we need to stop for a moment and think about whether this specific purchase will truly improve our situation or worsen it. Are the worsening of the financial problem and the mental stress we’ll suffer from worth the purchase? Perhaps our ability to forgo the purchase will actually strengthen our sense of self-control and improve our mood.

Therefore:

Try to avoid spontaneous purchases. Invest thought into planning the time you’ll dedicate to shopping and arrive prepared for the purchase. Prepare a list according to which you’ll make your purchases at the supermarket or shopping center, and conduct market research to compare prices before purchasing a service like car insurance. Try to avoid purchases whose entire purpose is mood improvement.

4. Social Media and Influencer Impact on Spending

In today’s digital world, our spending habits are influenced not just by the people physically around us, but increasingly by what we see online. Scrolling through social media, following influencers, and watching curated content can trigger unplanned purchases just as powerfully as being in a group.

When we see influencers showcasing the latest products, targeted ads appearing in our feeds, or friends posting about their recent purchases, we’re exposed to constant buying triggers. The “everyone has this” feeling doesn’t just come from our child’s classroom anymore, it comes from our screens, where we see perfectly styled lives and must-have products presented multiple times a day.

Social media creates a sense of urgency and FOMO (fear of missing out) that can lead us to make impulse purchases. We click “buy now” on a product we saw in a sponsored post, or we feel the need to keep up with trends we’re exposed to online. The ease of online shopping, often just a click away, makes it even simpler to spend without thinking.

When spending is driven by the desire to match what we see online, to show others our success, or simply because “everyone seems to have it,” money feels less valuable and easier to spend.

Stop and think for a moment before clicking that purchase button. Ask yourself: Am I buying this because I truly need it, or because I saw it online? Stick to what suits your life and budget, not what suits an influencer’s sponsored content.

Don’t be tempted to follow every trend you see on your screen. Your financial wellbeing is more important than keeping up with the constantly changing world of social media.

5. Review Your Service Providers Regularly

What amounts are you throwing in the trash every month when you don’t dedicate time to checking contracts with various providers? Well, we’re talking about thousands of shekels per family per year. If someone offered you to earn an additional 1,000 ₪ per month for a few hours of work from home or your car, would you refuse?

Contacting service centers takes a lot of time and is exhausting. Treat this time as actual work time.

Every month, dedicate time to checking your service providers:

• Your communication packages, cellular and internet plans
• Bank fees, perhaps you can save through proper management with the bank or by switching to another bank
• The cost of credit cards and various customer clubs, many of which you don’t use at all
• Insurance, perhaps you have duplicate insurance policies or ones that don’t suit your current or future needs, and yet you pay for them every month
• The fees you can save in provident funds, continuing education funds, and your pension fund

In Summary

The money doesn’t really disappear on its own. You’re spending it without noticing, and this can definitely be changed. Purchasing with awareness, planning, and control will lead to a change in consumption habits and strengthen control over household financial management. That’s how you’ll find the money.