Collecting receipts is simple enough as we’re out and about, even just sorting through them to see where the money is going. There are plenty of reasons to be collecting the receipts anyway that can be discussed another time, but for now once it’s been determined where the money is going and where to begin cutting the fat out of our spending, this is a great first step!
Taking this first step can be very difficult for some. Admitting what is waste spending and accepting the decision to stop the spending can cause some people from moving forward on their journey to becoming wealthy. Giving up convenience for a short term might be just too difficult to accept.
That’s an important fact to remember here. The changes we’ll be making to put our finances in order only need to be for a relatively short term. Once we’re securely on track to financial freedom if there is still a desire to pick up some of our old habits then they can be revisited and determined if they’re wanted.
At this time what we’re doing is identifying those things in our lives that we purchase on a regular basis that aren’t needed. We’re cutting out the fat in our regular monthly expenses. It’s time to bite the bullet and accept what’s wanted but not needed.
This will allow us to finally see how much extra money we have at the end of a month. No, this won’t be used for purchasing extra stuff that we just cut out. The purpose of this extra money will be to apply to credit cards and loans that we can get rid as quickly as possible.
In the end this gives us money that we’ll have available for emergency situations, preparing for our next big purchase item, investing appropriately, when we retire.
Cutting the fat from our expenses helps us to become a lean, and knowledgeable spending machine! Know where your money is going.
Believe in yourself,
Warren La Duke