Financial Fundamentals to Save More Money and Pay Off Debt

Today, we discuss some basics that we need to understand in order to help us save more money and help us pay off our debts. We focus on five main ideas that are key in order to get things moving in the directions you want them to move.

1. Setting Goals

2. Tracking Your Expenses

3. Identifying Spending Patterns

4. Separating your spending from take home pay

5. Doing uncomfortable things

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1. Make a Goal
-"You can't hit a target that you can't see, and you cannot see a target you do not have" Zig Ziglar
-Have a big goal that you want for your life. It can be anything, it's your goal.
-So it might be to buy a house or buy a car or travel or be financially independent or retire early or giving.
-However, sometimes having a big goal can be scary. So the next thing to do with that goal is to break down to bite sized steps.
-Set up milestones that you want to hit in 10 years, then make it 5 years, then make it 1 year, then make it 6 months, then make it 1 month, then one week.
-"A goal without a deadline is just a dream" Robert Herjavec
-Those milestones can become deadlines to help push you to reach your goals.
-Finally review your goals regularly to see if you are progressing in the right direction.
2. Track your expenses
-"If you don't know where you are going, you might wind up someplace else" Yogi Berra
-At least for one month. See where all your money is going.
-Just pay attention to how you use money
-At the end of the month begin to categorize your spending
-Separate essentials from non-essential
3. Identify your spending patterns
-Payday Euphoria
-Instant Gratification
-Spending leaks
-Emotional Spending
-Found money
-Impulse Purchase
-Try waiting 72 hours before deciding to buy something

4. Subtract your spending from your take home pay

-Before you pay for everything with a credit card, ask these two questions
1. Is this a want or a need?
2. Can it wait?
-Average Interest on credit card is 18%. For every dollar you leave on your credit card it earns 18 cents of interest.

5. Moving towards your goals

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