Creating the Blue Print 1: Spending Habits
May 16, 2017 IN Living Free

By now, the reality of your financial situation has set in.  Your desire for Living Free has ignited a fire inside of you.  Don’t let this fire burn out… let’s now begin to create your blue print on how to achieve financial freedom.

Take an honest look at your monthly expenses.  How many of the items on your list of expenses, are necessities and how many are luxuries?  Think about it…what luxuries are we willing to live without to pay off our debt? The journey to Living Free will require temporary sacrifices.   You have to be realistic about this.  You have to decide what is best for you and your family.  Let’s evaluate the following areas and see where you are willing to change your spending habits for the sake of Living Free (There are no wrong answers, just things for you to consider):

Cable Television – How much do you really watch television?  How important is it to you? Could you better spend your time doing things with your kids or elderly parents?  This is not a guilt trip, it’s a reality check! Cable television can cost around $150 or more a month.  Cutting the cable could free up an additional $1800 + a year to be paid on your debt.

Car Insurance- Of course, everyone has to have car insurance.  However, would it be beneficial to temporarily raise your deductible?  Instead of a $500 deductible would it make since for you to choose a $1000 deductible?  The higher the deductible, the lower your monthly insurance premium. Lowering this expense will also help to free up additional money to pay towards your debt.

Fast Food Cycle – We are all guilty of it.  Grabbing fast food at lunch is by far the easiest option.  However, changing your lunch ritual is the fastest way to save money!  Try taking your lunch four days a week and reward yourself on Friday with eating out.  Make eating out a “treat” and not the usual.  You will save a good chunk of money this way. Think about it…if you spend $10/day for lunch = $40/week (eliminating 4 days a week) = $160/month = $1920/year.  That’s an extra $1920/year you could use to pay on your debt. 

These are just a few areas in which you can consider changing your spending habits.  Every little bit adds up.  Remember, the journey to Living Free takes a bit of sacrifice initially.  However, the reward at the end of the journey is so worth it.