By Deletra Hudson, “The Financial Educator”
CAN YOU AFFORD TO LIVE?
How much does it cost for you to live your life the way you desire? Believe it or not, many of us don’t know. We are unconscious about how much money we bring home as income. We do not know how much we spend on paying bills and living expenses. Why? Some of us don’t care so we don’t bother to keep track. But many of us are trying hard to make ends meet because we are not living within our means. Now is the time to transform our mindsets.
Here is a key step to help you gain a better understand about how much it costs you to live:
Document and track all your income and financial obligations for each month.
- List all income. Start with your net income. Your net income is the income you actually bring home. This income can be your salary from your job, business income, investment income etc. Include the dates that you receive this income.
- List all bills and financial obligations, due dates, minimum payment due and outstanding balances.
I recommend performing this activity for a 30-day period. After the 30 days, analyze your activity. Identify the patterns of when you have income flowing to you and when your money flows out. Determine how you can start controlling money activity and reducing your financial obligations to the point that you are not spending more money than you have income.
Here are three benefits of learning to live within your means:
- Raising consciousness of your money flow
The above activity will help make you conscious of how your income flows in and when you obligations are due and paid. Raising consciousness about your money activity will make you aware of how much money you make, how you pay your bills and when your bills/obligations are due.
2. Understanding your relationship with money
Understanding how much money you bring home versus how much you agreed to as a salary is valuable information. Lacking this information may contribute to your habit to overspending.
3. Tracking to help improve your financial position
Becoming aware of the due dates of your financial obligations will help you pay bills on time, and minimize penalties and late fees, which will help improve your credit and financial position.
It doesn’t matter how much money you make, but it does matter what you do with what you make.
If you are ready to get support with living within your means, apply for a complimentary financial empowerment session.
For more information and daily tips on how to start improving your financial position, like my Facebook Page – Deletra Hudson LLC.
Get a FREE download of Deletra Hudson’s Bill Tracker Sheet to help you list and track your financial obligations. Click BILL TRACKER to request your copy.