I just got off the phone with Judy. She has applied the concepts that we’ve been talking about here at Wealth Pilgrim and has completely eliminated financial stress from her life. I was so excited that I wanted to share our conversation with you. Judy was kind enough to agree, so here goes.
1. The first great decision she made was to stop worrying about her investments.
Like most folks, Judy’s accounts have taken it on the chin over the last six months. Thankfully, her accounts were diversified, so she didn’t get hit as bad as many other people, but the losses were still painful.
Judy calculated that she really didn’t rely on the money in her accounts to supplement her living expenses. As a result, she decided right then and there that she wasn’t going to worry about it. That was smart. Why worry about money that doesn’t impact her lifestyle now?
2. Judy prioritized her spending.
Everyone seems to be tightening his belt these days — and Judy is no exception. She didn’t mind cutting her spending, but she didn’t want to cu
t any of her enjoyment from life. She looked at her spending and found that she really didn’t need a personal trainer anymore since she knows her workout routines. And since she’s retired, she really no longer needs a housekeeper. She found that by cutting these two costs, she would “generate” $4,000 in savings each year. The good news is this: Judy absolutely loves to travel, so she just found her travel money!
3. Each month, she puts the money she saves by cutting the trainer and the housekeeper into a special savings account.
At the end of the year, her special account has the $4,000 she needs to travel. And away she goes!
She told me that this step was critical to her success. Had she not socked the money away, she was afraid that she’d spend the money little by little at Starbucks and having lunch out.
Judy put her financial serenity on autopilot. How about you? Have you got any tips to help us cut the expenses and increase the fun?
mimi says
Yes