Home
>
Personal Finance
>
Expenses A ? What Are They And What Can We Do About Them

Expenses A ? What Are They And What Can We Do About Them

It is crucial as an individual who is striving for financial freedom to be able to recognize the different type of expenses in our lives.
It is a proven theory that it is easier to cut your expense than trying to earn more income.
In order to maximize profits, a manager will try to minimize expenses before trying to gain more revenue.
And we can learn from that. By recognizing our expenses and ways to handle them, we will be able to create more revenue in our lives.
This article will help you to do that.

According to Rockefeller diagram, the following ten expenses are the different types of expenses that exist in our lives. Be aware that certain individuals might have more expenses in their lives. In order for us to achieve financial freedom, always bear in mind that our main goal is to minimize our expenses.

Kindly spend some time reading through the different type of expenses. (Remember them if you have to)

1. Giving
2. Self
3. Taxes
4. Shelter
5. Household
6. Auto
7. Fun & Entertainment
8. Insurance
9. Debt
10. Business expenditures

In this article, I am going to talk about the first five expenses and in my next article I will talk about the next five.

Expense Category #1: Giving

Most people do not consider this as an expense. Some will even completely eliminate this and not have anything to do with it.
In the bible, Christians are encouraged to allocate ten percent of their income as a tiding.
Most successful people actually allocate ten percent of their income to benefit others.
If you were to think about it, it is making sense! We have to agree that there is some "force" providing blessing of money for all of us. If that "force" were to choose who should he/she provides the money to, the "force" would rather provide the money to people that are generous.
Beside, there is no point in being a rich scourge.

Expense Category #2: Self

Bear in mind that successful people save a part of their income first and live on what is left over.
If we practice that, it will make a huge difference in the way we handle our money.
By saving a part of our income first (try to save at least 10% every month), we will be more careful on the way we spend our money.
With a proper budgeting system, eventually you will be able to save enough to invest your money to make more money.

Expense Category #3: Taxes

This is an expense that we can't avoid. There are different ways certain individuals are able to minimize their tax expense. Consult an expert to learn more.

Expense Category #4: Shelter

Shelter expense ranges for every individual. Some people rent a room, some rent the whole apartment, and others got their own monthly finance payment plan.
A lot of prosperous people start out financing a house and while they are doing that, they will be renting out the rooms that they do not use. Some will even build extra rooms to create more revenue. Not only they are minimizing their shelter expense, some are even able to totally eliminate this expense. Bear in mind that in order for us to achieve financial freedom, we ought to minimize our expenses.

Expense Category #5: Household

This ought to be your largest category expense. Household includes food, clothing, bills, etc.
One ought to try to allocate the most budget in this category. Being the largest category, household expense has got the most potential to be minimized.
For example, instead of subscribing to the expensive cellular phone plan, one can choose to apply for the cheaper plan and try to limit their cellular phone usage.
Always take note of the day that the bills arrived. Write it down in your calendar. This way, you are able to see your budget clearly. For example, I realized that for my electricity bill, I always receive the online bill on the 26th of every month. In my planner, I will highlight the 26th and write "electric expense".
At the beginning of the month, always browse through your previous month expense and try to find ways to minimize it.

Take some time to sit down and look at your expense and spend some time trying to minimize it and with a constant practice and more knowledge, you will be amazed at how much money you are able to save every month.
I will meet you in my next article for the next five expenses. Cheers!

Working together with you toward financial freedom,
Henry Tanaka
--------------------------------------------------------------
? 2005 Henry Tanaka. All right reserved worldwide
Reprinting and republishing of this article is granted only with the credit showed below included. Permission to reprint or republish does not waive any copyright.

Henry Tanaka, a college undergrad who's been making a good income online, believes that with the right guidance and teamwork anyone can attain financial freedom through internet. Take a look at his step-by-step method at: http://www.showerincome.com

In The News:

Fitness centers and workout studios are starting to establish policies that prohibit shooting phone videos to protect people's privacy.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents

Apple recently notified a small number of iPhone customers in 92 countries that their phones may be under attack by mercenary spyware.

An artificial intelligence-powered home security system can fire paintballs and tear gas at trespassers. The camera identifies human faces and animals.

Technology expert Kim Komando gives her tips and tricks on enhancing your user experience a smartphone and other devices you use everyday.

A new camera called NUCA uses artificial intelligence to create deepfake photos of subjects by stripping away clothing in close to real time.

The Kimberley Kube trail-ready camper has a compact but spacious design and combines luxury, functionality and ruggedness for a weekend getaway.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Emails instructing you to reset your password for an account may be legitimate, or they may be scams. Kurt "CyberGuy" Knutsson explains.

Northrop Grumman's Manta Ray uncrewed underwater vehicle aims to revolutionize undersea missions — it glides through the ocean without human assistance.

Learn how to work Google's calendar application to streamline and organize your daily tasks from technology expert Kim Komando.

If you do not want Facebook to have automatic access to your private photos, follow our tips to protect yourself. Kurt “CyberGuy" Knutsson shows you how.

Kurt “CyberGuy" Knutsson goes into detail about Apple’s recent iOS update that allows iPhone users to instantly translate spoken language simply by using the Action Button.

Safeguarding your digital life with a reliable physical backup isn't just a precaution, it's a necessity. Kurt “CyberGuy" Knutsson provides the essential backup checklist.

Kurt “CyberGuy" Knutsson reveals how a Redditor exposed false recycling claims at their apartment, highlighting a report that only 21% of U.S. recyclables are processed.

Kurt "CyberGuy" Knutsson offers a travel toolkit featuring five technology tools to help you with booking flights and hotels for your summer vacation.

The bubble behind the clock on your iPhone can appear in different colors. Kurt "CyberGuy" Knutsson explains what each of those colors mean.

Scammers are using the power of artificial intelligence to mimic voices of people and are using the fake voices to commit crimes, like kidnappings.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Tech guru Kurt "CyberGuy" Knutsson explains the science behind the Invisibility Shield, a 6-foot shield that makes people become invisible.

The International Olympic Committee on Friday announced plans to use AI in various Olympic aspects, including athlete identification, training and judging.

Tech guru Kurt "CyberGuy" Knutsson explains an easy trick to avoid squinting while working or surfing the web by zooming in on your personal computer.

Streaming giant Roku has recently been targeted by a pair of cyberattacks, and the company confirmed over a half million Roku accounts were compromised.

The Land Aircraft Carrier combines an all-terrain, six-wheeled vehicle with a two-seat aircraft, which features electric vertical takeoff and landing.

The European Union has sent TikTok a "request for information" on the video sharing platform's newest app, TikTok Lite, under the Digital Services Act, with the aim to clean up social media.

Expenses A ? What Are They And What Can We Do About Them

Personal Finance