Would you be interested in learning how to free up 10% – 15% of your income? Just imagine what you could do with this money. You could pay down your debts, increase your savings, or work toward that next important purchase that you have in mind.
Find out how to free up 10% – 15% of your income by watching this video.
In this enlightening video, Debt Guru Mike Peterson shares a powerful three-step process designed to help individuals free up 10-15% of their income. The strategy begins with a comprehensive tracking of all income and expenses over a seven-day period. During this time, every single expenditure must be meticulously recorded down to the last penny, regardless of the payment method used. The purpose of this exercise is to gain an unaltered, true-to-life picture of one’s spending habits without making any changes to normal behavior during the tracking period.
Once the tracking phase is complete, the second step involves a detailed analysis of the recorded expenses. Here, each item is scrutinized and categorized as either a “want” or a “need.” This crucial distinction helps identify areas where spending can be curtailed. Peterson emphasizes that even small, routine expenses, such as daily purchases of Diet Cokes, can add up significantly over time. He shares a compelling example of a traveling salesman who initially underestimated his spending on Diet Cokes, only to discover he was shelling out over $200 each month on this habit alone.
The third and perhaps most challenging step requires a commitment to reducing or eliminating “want” expenses. This step demands discipline and a conscious effort to redirect the money previously spent on non-essential items towards savings or investments. Peterson underscores the potential long-term benefits of this approach, highlighting how small daily savings can accumulate significantly over the years, potentially accelerating retirement plans. He drives home the point by illustrating how a seemingly insignificant dollar saved daily and invested at a 10% interest rate can grow into a million dollars over 56 years.
Overall, Peterson’s method offers a straightforward yet effective framework for achieving financial freedom by encouraging mindfulness and intentionality in spending habits. By following these steps, individuals can not only free up a significant portion of their income but also lay the groundwork for a more secure financial future.