Good morning guys and welcome to Day 14 of the Financial Freedom Challenge! 🙂 We’re almost in the middle of our path to Financial Freedom. How do you feel? Are you noticing any change or improvement in your life and financial mentality? Share your opinion in the comments before starting with Day 14. Today’s we’re going to work on our expenses and how to improve their “quality”.
Then proceed with today’s task!
What’s today’s task?
As you now know controlling our expenses is one of the most important steps towards Financial Freedom. Each of us bears different expenses, but one thing that we all should have in common is to prioritize them.
What do I mean by “prioritizing our expenses”?
Briefly, it means that we must pay ourselves first. In other words, there are many important actions we have to do between the moment we receive our Income and the moment we use it to purchase stuff we don’t really need.
Here it is the checklist of all the steps to be performed, strictly in order:
- Receive your Income
- Pay your monthly fixed expenses
- Make a transfer to your Emergency Fund if it’s not yet completely built. Remember that we started by creating a 1000 EUR Emergency Fund. Once you reach that amount, increase it to at least 3 months of living expenses
- Pay your debts
- Make a transfer to your savings/investing bank account
- Now it’s time to spend the rest of the money, but only now!
Is it clear? Before spending our money on frugal things we must pay ourselves, save and invest for our future, create an Emergency Fund, pay our debts and pay for our fixed expenses. That’s it.
Do not spend your Income on frugal things as soon as you receive it.
More suggestions for you:
- Spend where it really matters
- Cut costs on frugal things you don’t need
- Look for motivations behind your purchases
- Remind yourself of your priorities
A brief summary of today’s task of the Financial Freedom Challenge
- Carefully read the list above
- Copy it on your Financial Plan and make it part of your monthly financial routine
- Respect it every single month of your life
This was Day 14 of the Financial Freedom Challenge. I know I always say that but trust me, this step is very important! If you have any questions about this challenge, write a comment and I’ll be glad to answer you 🙂
Besides share in the comments your opinion about this step. Do you already prioritize your expenses? If yes, how?
Come back tomorrow for Day 15. I’ll be here for you! Remember to follow us on Facebook and Instagram! Share this challenge on your social media: this will keep you motivated during the path, trust me 🙂 If you want direct contact with me (answers, discussions, doubts, advice…) and the other participants, join our Telegram groups (ENG Group, ITA Group).
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