Hey Hey!!!! We are rocking and rolling with our finances! Have you organized your finances and found out where your money is going? If so then you are ready for the next step, categorizing your expenses.
If you want your finances to be effective, then you need to organize them in a way that is easy to understand. Here is the most basic way to categorize your expenses. You can slot them into one of the following three categories.
- Regular payments that you have to make, such as, your mortgage and utilities
- Expenses you must incur but that could be reduced, such as food, clothing, and transportation
- Expenses you could eliminate entirely, such as eating at restaurants, going to concerts and frivolous shopping.
In the last two categories, you will find many areas in which you can cut back. It is all about setting yourself up for financial freedom and making 2018 your best financial year yet. Here is your 20-minute assignment for day 3, categorize your expenses.