Saving Money - Tearing Off The Leeches

2년 전

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Do you really know exactly how much income you earn and subsequently spend? If you are like most of us, multiple small expenses go unnoticed and we end up paying a lot more money over time than we planned for.

The first question we must ask ourselves is, do you have a financial goal that would improve your overall quality of life? Maybe you just want more income every month to play with or to sink into a great hobby. You might want to save up for a dream vacation or work less, having more time to travel and explore. Whatever it is, most of us can agree we would certainly be better off paying less money for things that don’t improve our quality of life.

In order to accomplish any of these dreams the first order of business is to have that goal. When you figure that out we can start “tearing off the LEECHES” from the ground up.

What do I mean by Leeches?

A leech could be overbearing debt, excessive student loans, a smoking habit, a fast food habit, or shopping habit gone too far.

That extra movie / video game / magazine / autodeliver subscription that you use only once or twice a month. That extra gym membership that just racks up bills when you never really go anyways. That daily coffee you cannot seem to live without on the way to work.

The way these leeches get you, is that they don’t appear so menacing when it is just one or two at a time. After all, what is the harm of a $5 coffee to enjoy your morning commute to work?

Well i’ll let you know the harm. Over time, these costs compound into large chunks of money that is easy to overlook when you only deal with the daily expense.

For example, a $5 coffee a day 5 days a week is $25. $25, 4 weeks a month is $100. $100, 12 months a year is $1200.

$1200 A YEAR. For a small habit that is easily forgotten in our daily expenses. Add that unused gym membership for $50 a month, movies/games/ect. for $10-$50 a month, fast food for $50 a week, and on and on. You could be spending THOUSANDS of dollars a year on things that bring you little to no value.

When you calculate these costs in terms of years, it puts our spending habits in a brand new perspective.

I don’t need to even get into the compounding cost of interest on loans and debt, the lesson here is simple. If you are able to pay it off, sooner is better!

Now I am all for enjoying life, and a couple of vices here and there can make the daily grind much more bearable. However, the leeches do not need to consume you completely! It is critical to be selective and moderate in your choice of leeches!

Also, if you really do go to the gym and make full use of your membership, good for you and continue to do so! Just don’t let any fee and or membership be another worthless leech in the pile, draining away your hopes and ambitions.

When it comes down to it, all the little expenses that you incur in your day to day life are what is going to prevent you from achieving your financial goals.

What leeches are holding you back from your financial and/or life goals?

Let me know in comments below,
Thanks for reading!

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