I'm wondering if they know where all their money is going? If they have taken ownership of their spending habits?
Money is always a sensitive subject with people so I don't want to my push myself on them with my thoughts and opinions but if they ever asked here are the questions I would ask them to think about.
- How much money do you make each month?
- How much money did you make over the last 8 months?
- How much money do you spend each month?
- How much money have you spent over the last 8 months?
- What do you spend your money on?
The first step to getting out of debt and becoming financially independent is getting out of denial and facing your financial reality.
If you are interested in reaching financial independents here is the first step/challenge: track every penny you spend over the next 7 days.
- Get a little notebook or create a spreadsheet in Excel.
- Write down how much money you think you are spending each week
- Start saving those receipts and tracking those expenses daily (without judgment).
- After you do this let me know if you were spending more or less than you thought.
I'd love to hear your thoughts, questions or tips about facing finances.
Some things to think about (possible money drains).
A 12 pack of Coke costs $6.00 X 52 weeks = $312.00
Big Mac: $3.50 X 52 weeks = $182.00
Starbuck’s coffee: $3.00 X 365 days = $495.00
Credit Card interest average = 16% - 18%
Late Payment fees: $25.00+