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Losing Money And Not Knowing It

When I first tracked my spending I was sure I was losing money, I just didn’t know where. My first tally showed I was spending everything I earned plus I wiped out what little savings I had on a regular basis. It also showed me I was spending about 50% of my money on entertainment of various sorts. Everyone’s preferences are their own, but for me this was unacceptable. I was young and had goals and my spending patterns did not match my future vision.

 

Losing Money

 

Spend Less Than You Earn

I woke up to the fact that I was spending more than I earned (easy to do with credit). Changing this realisation can be challenging for many. I spent to keep myself amused and distracted from the fact I that I was not meeting my goals - a self-sustaining situation. If I couldn’t find a new zero or low-cost way to amuse myself I would find myself in this situation for some time. To be honest I still struggle with this from time to time.

Turning Losses Around

If losing money happens to be your situation, you will need to increase your income, reduce your expenses, or both. It makes sense when put this simply, but there is more to it than that. Don’t take action yet, read on.