Because I would like to reach FIRE (Financial independent and Retire early) in a few years and want to get rid of my student debt as soon as possible, I took part in the PorteRenee financial course. In this week long Instagram course I learned the following 7 things.
The first assignment was to keep track of all your expenses for a month and how you feel when you spend them. The idea behind this is that there is an emotion behind a certain purchase that makes you buy things that are not needed.
In my student days I kept track of exactly what I spent and at what. So now again I am doing it for a month for even the smallest expenses.
A nice tool is the Demotivator. With this tool you enter the amount for a purchase and your income and then the tool calculates for you how many hours you have worked for this purchase. If you do this before you buy something, you will not buy anything anymore.
Work with weekly money instead of monthly money for groceries and fun things (Can also be used for gasoline, etc). As a result, you cannot spend everything at once at the beginning of the month. If you spend it immediately after you have transferred your weekly money, you will have a second chance the next week to budget more.
Open different accounts or jars
At Banks like MoneyYou and Knab you can open jars or different (savings) accounts without it costing more. As a result, as soon as your money is received, you can distribute it among these jars and then your money has a destination and then you can no longer spend it on things that you do not need.
Pay yourself first
I already apply this principle in my company, but now it should be done privately. So every incoming money I will allocate a percentage to fun stuff and investment jar in addition to a percentage of course for fixed expenses and other jars.
Patience don’t buy right away
Put together a list of things you want and then you can budget to buy them. But even more important if they are on that list, it will automatically become clear whether you really want them or not. Maybe you think later after 30 days I don’t want it anymore and then you have saved again.
Make it more difficult for yourself to make purchases
For example, remove your payment details from online web shops, so that you have to fill them in every time you want to buy something. You have to do more to get it, so you will think about the purchase and then you do it less quickly.
Create a mood board
Create a mood board with your big dream on it and hang it somewhere you pass frequently, so you are constantly reminded of your dream and saving money for it instead of spending it on things you don’t need.
Bonus with paying yourself first principle I managed to reach 60 percent of my investment goal already this year. Thanks to some investment profits.
Reken af met al die vaste lasten en kies voor vrijheid
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