FMO =Financially Modified Organism
We all have a favorite pair of pants or a shirt that makes us feel great when we wear them. So we tend to cherish those items and not wear them as often. When we do wear those items it tells us we fit the mold of what we were when we bought them.
I have a pair of pants usually slated for me in the spring, but often a little eye-opening moment happens when I try to put those pants on every few years. They don’t fit any longer. I can’t button them and usually just put a belt on without fastening the pants. The reason for my new found situation, I gained weight, because i let things slide. Over the months of not wearing those pants, I put on somewhat feels like a few tons of butt and belly meat.
The simple act of putting on a pair of jeans has told me I have not been paying attention to my weight and physical condition, and I have work to do. This is actually a post about finances but stay with me here.
The very same thing happens almost by magic to us financially. We start taking on financial weight in the form of small debts which can affect out overall and previous lean financial state. Have you ever done an audit of your credit card or debit card spending and try to shed some financial weight?
Credit cards and debit cards are like a financial buffet VIP pass, allowing the holder of these small densely packed financial calories cards to got wild. I like to think of credit cards and debit cards as the High Fructose corn syrup in your purse or wallet waiting to enter your financial body. Ewe Financial GMO, or FMO Financially Modified Organism.
Have you ever taken and financial inventory of your spending habits regarding your credit and debit cards. The world is our financial buffet with the membership sitting right in your pocket waiting for you to enter the feast. If you have never taken an inventory, it’s time to do so. Here are the steps for your spending habit inventory.
- Gather your credit card statements. 3 months worth
- Gather your bank statements attached to your debit card. 3 months worth
- Look at each transaction and label it(AN) Absolutely Necessary (example, automobile gas purchase, is absolutely necessary, getting a cheeseburger because you were too lazy to make lunch is not.)
- If the purchase was for comfort, entertainment, recurring payments for something you don’t use, or laziness label it (UN) unnecessary
Tally up your unnecessary purchases, particularly the recurring payments. If you are not using the recurring item or service you are being billed, the answer is simple CANCEL IT!
Performing a routine audit and having an action plan can allow you to maintain a manageable healthy financial weight. One practice I have performed since 2004 has been to find a comfortable level of money to work with per month, no matter what raises or financial increases I get to spend that Set monetary level. I have based my living expenses of $2800 a month give or take a few bucks for the last 12 years. Anything over that $2800.00 amount is slated for going into savings of some sort. Some of that $2800 right into savings as well. my income, I increase the amount per month directly to my savings account. Now I will not sit here and say that I am a perfect financial guru, I am a human with emotions and emotions can make us irrational, Sometimes I refer to myself as a recovering debt alcoholic with an infrequent tendency for falling off the wagon from time to time personally. Because I pay attention to my finances overall and frequently, I can get back on the wagon and recover without too much mayhem and destruction in my life.
I know a few people with the mindset who constantly rationalize well I’m broke so might as well spend it while I got it. I experience this from the time I was a child, especially from the various peer groups in my life. I too was there in my young adult life, and I now refer to myself as a former Fat Debt Slave. Financial responsibility is a choice and sometimes the choice is uncomfortable for a defined period.
Financial health is equal to physical health, they both have to be monitored and maintained to make the life trip easier for the long-term. Simply adding debt to your budget unconsciously can and will cause discomfort.
Unless you have a financial generation of unlimited proportions, we have to monitor our financial situation constantly. Purchases we find important today may be just a small or medium burden tomorrow. I am not advocating not living your life and not having awesome experiences, but be mindful of where and how your financial resources are allocated and how the bottom line will be affected.
Have an awesome day.
The Billionaire Lifestyle.