Jun 12, 2014
SITE: http://www.courtneyanderson.com/swca-episode-123-financial-fierceness-series-why-am-i-always-living-paycheck-to-paycheck-even-when-i-get-salary-increases.html
SHOW NOTES: This episode is part of our FINANCIAL FIERCENESS!™ series! Our FINANCIAL FIERCENESS!™ series integrates our financial goals into our overall strategic development plan for surpassing our goals. We deal with the specific issues we need to explore in order to achieve (and surpass) our financial goals. This episode is, “Why am I always living paycheck to paycheck even when I get salary increases?”
Budgets?
Be cautious about budgets. People may create “ideal” (or
fantasy) budgets. The goal is attaining and sustaining financial
independence so you need to increase your income (and income
producing assets) and lower your expenses.
The title of this episode states that there is already more income
yet they are still paycheck to paycheck. Thus, we should
immediately focus on expenses. Remember, the path to financial
dependance (aka “broke”) is to spend more money when you earn more
money. Instead, you must simultaneously work to increase income (or
revenue) while decreasing expenses. Focusing on decreasing
expenses, you must do the opposite of the inclination (i.e., I
got a raise so I can get the bigger satellite package,
etc.).
Money Days?
This is my term for when I go through all of my expenses and cut
costs (or increase my money that I have possession of). I take all
of my required expenses (utilities, etc.) and my desired expenses
(cell phone, etc.). I usually take 1-3 of the total list on each
Money Day and do the following:
1) Call the vendor.
2) Have a timid demeanor.
3) State, “I
am not able to afford this. Will you please help me lower my
bill?”
4) I tell the customer service agent that I don’t want to cancel my
service but I am just unable to afford it. If they do not make any
acceptable reductions, I will then go to the cancellation
department (usually an agent trained in retention of customers who
will be able to offer better savings to me).
5) Add up all of the money that I have saved each Money
Day!
Make the following commitment to yourself: I will pay myself money
that I was giving away and I will move closer to attaining and/ or
maintaining financial independence!
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