How I Reduced My Expenses
Here’s how I reduced $525 in monthly expenses over the last 3 months. One of the best ways to “make more money” (is to actually keep it) is by optimizing your bills every 3 to 6 Months or every 2 to 4 (if you’re a frugal freak like me). You’d be surprised at what you find you could save. I typically call up my cell phone provider AT&T once ever couple of months to check if they have a deal that can save me money. If you are looking for ways to save money check out the video in this post. I show you how I Reduced $525 dollars in monthly expenses by making a phone call, moving into an apartment with fewer utility costs, getting a new job, and etc.
Cover of I Will Teach You To Be Rich
A Methodology
I don’t think everyone will be able to apply all of these items, but all of them are applicable to the mindset we all should have. A guy named Ramit Sethi from the blog I Will Teach You To Be Rich talks about the 3 step C.E.O acryonym. C-E-O stands for:
Cut big ticket items.
Earn more money.
Optimize your spending.
One might say that all of these things are common sense, but the statistical evidence of American spending and debt proves it’s not. Not even for our government. The truth is we all need to live well below our means aka within our means. I prefer to say well below because it gives a different perception than within. The reasoning is because “within” can mean spending a dollar less and you are still within your means, but well below make it clear you should come so close to broke.
$525 a month like someone getting a side job! That’s $6300 a year. Imagine what you could do with that. In fact what would you do with $525 dollars extra a month? That extra money could go towards a lot of things.
A Mindset
Too often we think the way to have more is by making more. I think this is a false assumption that you have to make more to have more, when in fact you could have more if you spent less. I think this is a better position to start from because reducing waste often takes less effort than creating more gains. Going out and getting another job is much more effort than to stop paying for things you don’t need. For me it was just a phone call and some simple changes in my choices of what to buy. If you really want a raise because you need a higher monthly cash flow start with your spending and not with your boss. Once you have cut down on your spending your “need” for a raise is reduced and therefore your ability to negotiate is heightened.
Enabling Yourself To Build Wealth
From this position you no longer need the money; you want the money. This is a powerful statement and begins to balance the negotiating playing field you have with others. This means you have the power to walk away. So your boss can say here’s a 2 % raise and you won’t take it because you are afraid of losing the offer because you have already given yourself an “$X%” raise already. So that now you are willingly to walk away (not that you should as a raise is a raise, but your not afraid to ask for what you want) you can negotiate a raise without a fear based need, but on the merit of your past performance.
The only way to start reducing the costs of your bills you need to know where your money is going. That starts with a budget. If you haven’t already created one start here or visit the video page.
If you’d like to read more about Ramit Sethi’s CEO 3 Step Financial Savings Plan check it out here.
If you like this video check out these other great videos I’ve aggregated from youtube! Visit budgetstrong.com‘s video page here.
