By Michael Kay via Iris.xyz
Winter. The season when hibernating becomes routine, exercise lessens and somehow, extra weight tips the scales in the wrong direction. The same is true when it comes to your spending. We set positive goals to improve our personal financial lives in shape, but somehow it all gets lost in the cold. The daunting task of changing our spending habits become a severe incoming snowstorm we avoid at all costs.
Living on the financial treadmill can lead to complacency and waste—it can even bloat a budget to an unhealthy level if we don’t push ourselves towards success. But, if you truly desire your financial goals, all is not lost.
Here’s where to start: Just like weight-loss, set a goal. First, understand where your money goes each month and categorize everything into a list of: 1) Fixed costs (debt, rent, etc.), 2) Semi-discretionary (food, clothing), and 3) Fully discretionary (vacations, entertainment, etc.). Examine your fully discretionary category and pick a number you wish to save, invest, or reduce debt. Let’s say, 10%.
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