Finances Made Easy - Step 3 – Reduce and Maintain

Seeing your expenses clearly will allow you to check if there is still something you can reduce or amend. For example, if you notice that you are paying too much electricity or utility costs, you can deal with the company for a better plan (saving times) or even try with another company and see if what they offer would mean a reduction of your costs. Same with the cell-phones or Television companies. Or you can evaluate your use of each item. If you use less is the cost benefit worth it to you personally?

If you have order in your finances, you will have full control of the incoming cash versus outgoing cash. This will give you a clear picture of your yearly financial situation and most important you can ensure that the outgoing cash does not exceed the incoming cash.

Now that you have a proper individual list of costs appearing in your daily life, it is on you to "maintain" this list. Write down the paid-expenses daily, weekly or monthly. I suggest you keep track of the daily costs in a small "household booklet" or note on your phone. You may then transfer them monthly in the “Monthly Control Sheet”. You could even use free Apps for your Smartphone (i.e. Money Control) which gives you a monthly summary. All the paid-out expenses with Credit Cards or Bank transfers need to be included in the Monthly Control Sheet. Yes, it takes time to get used to doing it, but it will give you lots of pleasure realizing you have now control over your "living costs". After two or three months, your eyebrows will be raised by discovering costs you never thought about!

Try to think and determine, which of those indispensable costs on your list can be reduced. Which cards can be cut off, which bank accounts can be closed.

. What baby-steps can you do to start reducing some costs?

You are now over half way to Mastering your Finances. Just two more steps to complete the process. See you next Tuesday!

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