So how’s it going with getting everything squared away? Are you taking the 20 minutes per day to get your finances in order? I know it is a daunting task, but if you want financial freedom you have to take control of your finances.
Moving on to the next step of taking control. You need to devise a plan for living beneath your means. While reviewing your finances did you find any areas where you could reduce spending? If so, start there. Reduce your monthly expenses so that you spend less than you take in. Often times, people ask me how much they should cut back. While there is no right or wrong answer, I use the example. If you are adding $500 a month to paying off your credit card balance, then you have to cut $500 a month from your spending just to stop your finances from deteriorating.
Using the example above, even if you manage to find $500 you are still not making progress. The rest of the solution is for you to cut MORE than $500 to get your current debt under control and start building your savings.
Todays 20 minute assignment: Make a list of all of the expenses you are eliminating and how much you hope to save. I’d love to know what you plan to eliminate. Leave me a comment below and let me know.
Be sure to come back tomorrow so that we can begin developing a debt reduction strategy.