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Did you know that your miscellaneous spending is enough to grant you financial freedom of sort especially in a realize time frame. As I will always say, it about that long term mentality. Ok, I know a lot of us are involved in this.
There is a particular snack you just can't do without. Not too expensive or even expensive as the case maybe. You could eat one daily and still meet up with your savings. Yes, it's nothing I assume Oh!! Another of such is in the list, this special data offer every week to meet up with some movie series. Ahh!! How about that cool ice cream I normally take when having a walk at least twice a week?. And it goes on and on and here we have a collection of nothing.
The quick takeback here; ‘Nothing’ can take financial plans to the stage of nothing when ‘nothing’ is given too much breathing space. It has been where many of us has slacked when it comes to financial discipline.
Have you ever taken time to punch your calculator to discover your miscellaneous? Let's say you earn $500 a month and your make miscellaneous expenses of around $1.85 dollars daily. In a week, we are talking of -$12.95. How about a month and a yearly summary? -$55.5 and -$666 dollars respectively.
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So you just ended up losing close to a month and a half of your yearly earnings. Probably, this means you get paid for 10½ months. Maybe you never saw this coming, indeed such categorized expenses are crawlers. That old saying, ‘a little yeast takes over the whole dough’.
We both know that even half of that yearly miscellaneous expenses would go a long way in your investment especially when thinking long term. It's compounding effect on a good project could end you in some form of personal earnings through dividend payouts.
Am I NOW you financial adviser? Are you putting me on a monthly payroll? No, then I guess that answers itself. Of course this would have been another added miscellaneous for you.
Let's just say this is me saying my own thing and anyone who sees the need adopting to benefit himself. I also have myself to discipline as we speak. What am I saying here? It is always easier said than done, cutting off miscellaneous is not an overnight decision.
I mean, how do you enjoy that stroll without an ice cream? How about just holding a smart phone without data to just go through some videos. Or maybe we should consider how fun it can be to watch a football match without that chilled drink to catch up with the moment. And so did our pocket get a compulsory leakage.
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Do you always observe how easy it is to spend without knowing/caring and not able to save or invest without knowing too. As I earlier said, miscellaneous spending behavior does not come in bulk and since there is no registry, it means nothing.
It gets difficult to halt or even take a second thought. Whereas, the case of savings probably for investing will easily catch your attention as you see these financial figures under your custody grow. Most times, we get tempted to touch and in the process break out in the routine.
So how can one curtail miscellaneous? One of the ways is to be accountable. Not an easy task I must say, having to PEN down ALL your daily expenses can be very stressful. Many are likely to break discipline after a while. Nevertheless, if this is kept, positive results can be inevitable.
Avoid holding too much cash as it promotes traceless spending in the process. Anyway, bank apps can also be a trap since it is all about punching your screens and that's all. The difference here is that, you can see how much has left and easily put a halt.
To conclude, let me add, another suggestion here is to have target spending and when that is exhausted, you are done for the day. The advantage here is that target spending already puts the necessaries as priorities, making you spend only on effective demands. Financial discipline entails bending to inconveniences that can help hedge us with more investment firepower.
Posted Using INLEO