The Beginnings

Before we can start to save for that dream property,
vacation, car, etc. we need to get our financial "house" in order. To begin; make a list of what comes in for income and what goes out for expenses (dates for both). Much like writing down what we would eat to make changes in our waistline, this we will call a financial diet and trim the fat from our expenses to fill that wallet of yours. Here is an example list; A) Rent/Mortgage B) Groceries C) Credit Cards D) Car/Transportation E) Clothing F) Personal Taxes G) Health Care H) Life Insurance I) Furniture  J) Eating Out K) Entertainment ( movies/bars etc) L) Recreation. 

Like any responsible business you need to have enough income coming in to cover the bills going out, so not running into the red. If you do not think this is how it works then you are delusional and should be running for political office 😅, as that is why most governments have a deficit  Also living on credit does not work either as the interest will kill you and you are just working for free, not much incentive to get up Monday morning is it?  Us humans are a funny breed, what we consider a must as part of our wants and needs (in most cases) has to change. 

There is an "A" list of bills;
having a place to live, to eat, clothing and transportation. 

               Wasteful Debt

Its the dining out at expensive restaurants or food deliveries, needing that $7 latte, meeting the boys downtown (every weekend, really), extra pair of shoes to go with the 100 you  already have, spa treatments, a gym membership that comes out each month that never gets used; you get what i am talking about. As North Americans we have grown used to living off borrowed money, well if you want more out of life you need to change that mindset. 

                                                           Outlook Reset

So with just a few small changes in lifestyle you can achieve whatever your dream is by paying yourself first, say 10% of your monthly salary (set it up either with work or your bank for automatic withdraw and you will not miss it) and put that on the "A" list and then start reducing some of those off your wants column . So if your goal is to buy a condo for example, a down payment/closing costs is $20,000 or that holiday in the South Pacific at the same price, then by paying yourself $600 per month for 33 months you achieved it, then get ready to turn that ownership key or book that flight to Australia. Just give up a few extra nights at the bar, maybe brown bag it to work three times per week, making your fav coffee at home for pennies a cup, whatever it is the above list will tell you what to cut back on. I am not saying to give up on everything as its a matter of perspective on what you really want in life, so look in the mirror and you decide.