So what the heck do we do now that we’re sending our money to the right places?
In the last 2 series (especially in the comments) you’ve probably heard me say: “spend more money on what you enjoy and less on things you don’t”.
When done right, becomes extremely powerful because you don’t have to miss out on what you really love doing.
Instead you just cut out the mindless spending and learn to “prioritize”.
More on that in this article.
Recap (What You’ve Done Thus Far)
1. Downloaded the spreadsheet
2. Put in your own figures (monthly bills, how much you pay, etc)
3. Determined what can be done automatically and manually by using the red and blue color codes
4. Set up automatic payments so you can start focusing on your future
5. (up next). Using your money correctly. Hint: not budgeting
When you look at it from this perspective you can see that you have done a lot more than you think.
Things are going to get exciting because now the magic really does start to happen.
Spend less on things you don’t like and more on the things you DO like
We tend to spend recklessly on whatever we want, when we want.
This is not the way to go about it but rather the absolute worst way!
This is the reason why we are broke 2 days after we get our paycheck!
Actually, I highly recommend you spend your money on things you actually do enjoy and less on the things you don’t.
If you go to a convenient store and see a chocolate bar, do you really like it or just “kinda” like it. If you “kinda” like it then don’t get it.
You will have more money on things that matter to you the most, such as a vacation, a video game, your make-up, etc.
Determine your “likes”
Grab a piece of paper right now. Yes, I mean it. Grab one right now or at least open up notepad for crying out loud 😛
Write down what you absolutely love spending your money on. If vacations matter to you the most, write that down. If it’s shoes or movies, jot those down.
As long as the bills are being paid, the rest of the money is yours to spend freely! Just because you’re out of a job that doesn’t mean you can’t enjoy yourself every now and then.
Pro Tip: If your budget allows for it, save a mere $100-200 a month. This will be “backup” for when you need it the most.
If you’re utilizing your money correctly, you will be fine.
Spend less on things you don’t like. Don’t purchase a chocolate bar JUST because it’s in front of your eyes, or don’t buy your lunch everyday if you can make it everyday.
Of course this can be totally reversed if food was in your “likes” list.
The point I’m trying to make is; stop spending mindlessly on things you don’t even really enjoy.
Think about what you can be spending your money on otherwise. Think about your list! 😀
Prioritize is the keyword here.
Do not budget
As counterintuitive as it may seem, this is the last thing you want to do.
Budgeting means you are tied down to a set plan, and these plans come crashing down because they are “unsustainable”.
Budgeting leads to giving up in the first 2 weeks (if that) because you have to CONSTANTLY check if you’re spending on the right things.
It becomes tiring, boring and downright annoying. It leads you to not following it anymore and going back to your old habits. You don’t want to do that.
This is why I recommend spending less on the things that you don’t like and more on the things you love.
You’ll stay motivated to continue the good fight and you’ll have absolutely no plans of giving up. It won’t even cross your mind!
All at the same time you will be paying all your bills while living freely without being tied down to anything.
Prioritize, prioritize, prioritize. Do that and you can’t go wrong.
Well that concludes series 3.
Short and sweet, just the way I like it.
Taking on this new “prioritizing” mindset might seem like a really silly idea now, but when you implement it in your life you will realize how much money you’ve actually been wasting.
You’ll be nearing the end of the month and wonder how you’ve still got money left, when every other month you’ve run out in the first week!
I’m not even exaggerating.
Try it, you’ll be surprised.
Series 4 coming soon…
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