Thursday, July 20, 2017

Budgets are Boring...Or Are They?

For most of us including myself until recently, creating a budget and tracking one's personal recurring expenses seems daunting and rather unappealing. However, budgets are an essential part of the path to FI.

The first and quickest way to starting making FI a serious part of one's life is to reign in those monthly expenses and taking a serious look at where the money is going.

In most cases, my own included, there have been things that I was paying for that I didn't even use or remember that I have. Seriously, get rid of them!

Take a look at those big ticket items, consider your car, rent or mortgage, and food. Saving even 10% in these categories could mean literally hundreds of dollars in your budget that could be redirected towards your investments and achieving FI.

Chances are that in just a short time you'll be able to save yourself money out of that budget. But even more importantly consider taking time every month or week for that matter and go over those numbers and evaluate if there's anything you should be doing differently.
On a side note, I use and recommend Mint.

Remember, the time that you have left on your road to FI is directly impacted by the percentage of your income that you're able to save. So make savings that main factor and focus of that budget that you create for yourself.

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