How to Reduce Your Expenses

On our way to the creation of Financial Freedom, we will basically need our income to exceed our expenses.

Previously in this blog we have seen some ideas that allow us to create abundance and significantly increase our income in different ways. We have seen that everything is based on the creation of value for society and that the price of what we do is determined as such by the market rather than our values, principles and quality of person.

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However, that is just one side of the coin. On the other hand, we must reduce our expenses to effectively achieve, that the amount of money that reaches us monthly, is significantly higher.

Increasing our income and reducing our expenses until the flow of money is sustainable, is the first step to reach financial freedom. Keeping it comes later, and earning more and more money, to effectively keep expenses in proportion so that they provide us with a better quality of life, is the ultimate goal.

Our expenses can be divided as follows: 

• Expenses really necessary
• Apparently necessary expenses
• Unnecessary expenses

Unnecessary expenses are those luxuries that we give ourselves from time to time, although they are unnecessary, they are not forbidden at all. In fact, a very good way to liven up your process of creating abundance is to reward yourself with small luxuries for your achievements.

  

With what we have to deal with then, it is with the control of what we consider necessary expenses (apparently necessary expenses) and unnecessary ones.

  

I imagine that the necessary (subsistence) you have very clear, could be: Rent, Services, Food. And in these there is basically no discussion and there is hardly a way to diminish them, unless the quality also decreases eventually.

On the other hand, the expenses that you consider necessary outside those that I mentioned previously, may not be so necessary.

Look in your home, how many magazines do you have that you never read. How many books in your library that you did not even browse. How many elements have you acquired to not even use them outside the first few days?

  

Actually, there are many things that we consider necessary at the time of buying them (perhaps because of the mental programming that advertisers do when marketing the products) but that they are far from it.

  

Today I would like to share with you a trick that will allow you to control your compulsive shopping habits a bit. If you are not yet old enough to control your money and your expenses because you are not yet in the productive cycle, learning this from now on will help you when you start earning money, because you will see that one of the first things you want to do is buy yourself of everything.

The Trick

Before deciding to buy something that you consider absolutely necessary and indispensable, STOP!

Write it on a note that you stick in the fridge, and postpone your decision for a week.

  

After 7 days, take the note and ask yourself if you still want to acquire that same with the same passion, with the same need, with the same strength or intensity as before. If so, buy it then. BUT ONLY IF YOU CAN PAY IT IN CASH AND COUNT.

Otherwise, you will know that it is not a very good decision to say.

If you apply this 100% of the time, you will be surrounded by absolutely necessary things and you will have much more money at the end of the month. If you focus on growing your money and cultivating the habit of self-control, you can easily get rich and reach financial freedom, as long as your money is increasingly on autopilot.