We’re all familiar with the phrase “What you don’t know can’t hurt you.” Unfortunately, especially when it comes to money, it’s completely wrong. What we don’t know about money can lead to extremely painful and expensive mistakes.
What we want to achieve with this article is nothing grand. No big concepts or sweeping statements. Our goal is to provide just a few simple, practical things you can implement right away that can save anywhere from a few, to a few hundred, dollars a month.
The first step to getting a handle on your finances is completing a Chart of Expenses. (Email us at info@abundancebound.com with “Chart Of Expenses” in the subject line and we will send you this Excel spreadsheet). This document will guide you in determining (in extreme detail) exactly how you are spending your money on a monthly basis. It also allows you to determine your average monthly earnings. Completing this chart can be a tedious process, but is a crucial part of really understanding your financial situation.
Something fascinating happens when you start to really look at your finances. All of these things on which you didn’t realize you were spending money, will suddenly surface. It is amazing (and frightening) to discover how much is disappearing through financial leaks we don’t even know are there.
Some examples:
Where do you bank? How much are you paying just to have your account? Are you charged extra if you actually go into the bank and make deposits or withdrawals with a teller? We had one student who had never realized she was spending $30 per month in “Bank Charges.” Explore what options exist for free checking, free savings etc: then shift away from whoever you are currently banking with that is over charging you for this stuff.
What credit card do you use? Another student had a “great deal” with American Express. They were getting all kinds of special stuff... and were paying around $350 per year for it. Once they looked into the services that were actually important to them, it turned out that there was a free option that provided everything they needed. They had been paying that extra money every year for nothing.
Do you carry credit card “insurance?” We have all been guilty of this one. You know, the tele-marketer who signs us up for a free 30-day trial of some service, offering a free credit report or something similar. All we have to do is call and cancel if we don’t want to continue... and it seems such an easy thing to do at the time... and yet somehow we never do! Then three years later we find out we have been spending $40 per month for something we never used or cared about... you get the picture.
The point is that, with just a little bit of effort, all of us can probably find an extra $25-$100 or even more – just by taking the time to really figure our where our money is going. This is money that can start going to paying down debt, building investment accounts and actually creating a prosperous future. This month, make a commitment to find and plug your money leaks.
Putting it off will just make it more expensive.
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Take action about your finances! Visit The Artists' Prosperity System to check out our new home study course, and really start taking control of your financial situation.
