209 National Financial Literacy Month - Day 3 Expense Reduction Episode

The quote, "When you are in a hole, stop digging," applies to
some people when it comes to being in debt. In other words, even
though goods and services have increased, some people are going
about their lives and not reducing their expenses, this episode
speaks to this type of mindset.


There are three types of expenses listeners should be aware of,
these are fixed expenses, a person pays the same amount each
month, think of a mortgage payment. The next is a periodic
expense such as a vehicle registration that may be due every two
years. Lastly, there are variable expenses which are routine
expenses that are different each time you pay. All three of these
expense types are impacted by inflation, mind you there is going
to be six more rate increases during 2022.


Fixed expenses are easy to track and include in your budget, with
emphasis on expense reduction. Periodic expenses are easy to save
for, thus easy to track as part of your budget. Variable expenses
may require a different bank account, a stand-alone account to
track and reduce over time.


At some point in time, one must ask themselves if they need
certain expenses or not, if not, stop and pay it off, and if yes
negotiate the expense, transfer, and or manage it better.


There are different options to apply that pertain to your
expenses, they include: reducing, negotiating, transferring, and
managing, so evaluate and assess your options. 


If you have an apartment negotiate your rent, reduce
homeownership expenses, reduce utility expenses, reduce
transportation expenses, and reduce loan and debt expenses.


Given that we are in an inflationary cycle,  it is even more
important to reduce expenses at every level of your life. Whether
it is for housing, food, gas, and other goods and services, the
time is now for expenses reductions. Day three of the National
Financial Literacy Month is one of the most important episodes of
this month-long series.


Learn about Paul Lawrence Vann's virtual Financial Fitness
course, it is being offered at a 50% discount throughout the
month of April, National Financial Literacy Month, here is the
link:  https://bit.ly/3dbperG