We’ve seen how small changes to your regular routine, extrapolated over time, can result in huge savings.
Income – expenses = surplus/ (shortfall). This is still a valid equation. Just not your main focus.
An occasional shortfall needs to be funded through debt or from your savings. A regular shortfall is a recipe for disaster, and a sign that you need to take action before it’s too late.
But how will you know when this happens?
It’s called a budget.
According to William Feather, the American publisher and author, a budget tells us what we can’t afford, but it doesn’t keep us from buying it.
A budget is really just what you plan to do with your money for the foreseeable future. To get a starting point, you need to analyze your current spending patterns. Where does your money go every month?
Downloaded statements for credit cards and bank accounts can help you here. If you tend to spend mostly cash, try keeping the slips and analyzing them every month. Better yet, don’t spend mostly cash.
When most of your spending is electronic, there are many online tools you can use to track it. Find one that works for you. Some of them will also help track your investments and debts, which we’ll cover in the next chapter.
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To help with your budget, Burning Roses & Dancing in Valhalla are on sale this Halloween weekend for less than half-price. Grab them at D2D
Doesn’t apply to Amazon books, because, well, Amazon…
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Stop living from salary to salary. Achieve Financial Independence. Retire Early. Join the FIRE movement igniting the world.
Follow these weekly posts for solid advice on how to escape the rat race, covering material contained in Hard Money.
This is no get-rich-quick scheme. It won’t be easy. That’s why it’s called Hard Money.
Work while they sleep. Learn while they party. Save while they spend. Then live like they dream.
Anyone in Johannesburg who would like a signed copy (of any of my books, or Shorty’s Poems) can have one delivered to their door by Big Bad Wolf Motorcycle Maniac Deliveries. No charge for delivery.
Or have them delivered anywhere in South Africa via Bakgat Books. https://bakgatbooks.co.za/all-stores/burning-books/
Also available in Edenvale from Inner Journeys bookstore.
www.facebook.com/InnerJourneysdnr
Or from Profound Books in Bramley.
www.facebook.com/Profoundbooks
And they’ll always be available on Amazon.
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