Okay, let’s end the week on another positive note….I’m going to start re-visiting some of my Best and Worst financial decisions as an open book to you….hopefully you can pick something up that you can incorporate positively into your life. My 100%, hand’s down, Best financial decision I’ve ever made, by myself and now with my Wife….is to month in and month out (not easily by the way)….Spend less than we make…because we created a very comprehensive Budget. Sounds so simple right? Well, unfortunately overspending is probably the most difficult thing Americans struggle with. I equate it to a disease…or an addiction that culturally makes it okay to spend more than you take home.
The name of this blog is “The Monthly Nut”…which is another expression for your Monthly Fixed expenses, your fixed nut so to speak….the money that no matter what…you have to spend to live. Rain or shine you have to cut these checks. It’s your Rent, mortgage, cable bill, grocery bill, PG&E bill, on and on and on. Do you know what your “Monthly Nut” is??? I reiterate I’m sick, but I know what mine is pretty close to the last buck. Knowing what my monthly nut is allows me to know what I can save in a given month (or how much slack or room I have in my budget)…which in-turn let’s me know how that extra round of golf or dinner out will affect my savings goals or how it will effect me breaking-even for the month. It allows me to prioritize on what is important to my life-style, to do the things my Wife and I want to do, but also take a pass on the things that we really don’t need and infringes on our “savings goal”.
So, going into the weekend I beg you to find out what your “Monthly Nut” is. Really, really dig into it….gals - find out how much that monthly back waxing is....and for the men, how much are those monthly facials?....yes it takes time, but I promise you it will be worth it. Everyone has different expenditures, so of course yours will look very different than mine. I’ve listed the majority of every monthly expense that I have below to get you started on where to look….No joke, after doing this exercise you will gain so much power over your personal finances that it you will be shocked. You will also find out by doing the exercise what is discretionary vs. fixed. Add up every single bill you have and find out where you stand…when I did this with my Wife, we found out real quick where we could cut some fat and I bet you will too….it’s truly enlightening!
Have a great Labor-day weekend and I’ll be back at it next week!
Rent / Mortgage
Cable Bill
Electricity Bill
Phone Bill (home & cell)
Car Payment
Car Insurance
Parking spot payment
Gas
Student Loan payment
Credit Card payment
Groceries (My wife and I spend $400 a month for example)
Dining out allotment
Basic Necessities (what we spend at CVS/Long’s every month)
Dry Cleaners
Housekeeper
Haircut
Gym Membership
Subscriptions (i.e. Netflix, Magazines, etc)
Golf rounds for my wife
Manicures and pedicures for me
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