Are all the expenses you’re “used to” carrying still pulling their weight?
Getting a better handle on this means you need to dedicate yourself to getting Financial Power in place.
Where should you start when it comes to cutting the right expenses in the right way?
Start by looking at all your expenses from the prior year listed in your Profit and Loss Statement (aka P&L). Take out a yellow legal pad if you want a manual moment or open up a Word document and list them all. Then, sort that list into must expenses and nice-to-have expenses.
It’ll be tough to do this because everything you now spend money on seemed like a good idea at the time. But a sinister thing about some expenses is they may be small expenses, but if they’re occurring every month, for instance, there is a compounding effect, and not in a good way. The reality is all these “small” recurring expenses add up.
Here are two of the five most common areas to look at when it comes to cutting expenses: