Guarding the "financial door" could possibly be one of the most important ways to become financially free. Few people realize how much money "leaks" out--a little here and there--and how quickly that leak becomes a stream of money flowing away.
The best way to guard the door is to begin by keeping a simple record of every penny spent. Literally. A small notebook in your car to record the snacks you buy, the movie rental, the extra things on sale, etc. Once you've recorded a month's expenses, tally up, and multiply that across the year to see about how much is leaking out.
Of course most people can afford a "blow" category in their budget. But as Dave Ramsey says, decide how much that is, and don't blow over it ;-)
This recording and realizing how easy it is for money to leak will cause you to be more conscious of small purchases.
Once you really get the fever for getting out of debt, you'll resist those impulse buys and stick that money back in savings. The same money that was leaking out is now building up!
Keep you financial goals in front of you for stamina!
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment