Chapter 6 – Simplify Your Financial Life

Living a luxurious lifestyle can get you into debt. You have to cut down your expenses to boost your financial health. You know what they say– less stuff, more money. You can create a financial planner to allocate your income wisely and more efficiently. In this chapter, you’ ll find tips that can help you increase your income, save money, and possibly get out of debt.

Day 25 – Do A Garage Sale

If you’ re deep in debt, sell some of the things that you do not need. You can do a garage sale or you can sell them in various online marketplaces. Use your garage sale proceeds to pay some of your debt.

You can launch a garage sale by following these steps:

1. Check if you need a permit to do this. A number of cities require a permit for garage sales. So, head down to the city hall before doing a garage sale to avoid fines.
2. Gather your goods. Make sure that they are all in good condition.
3. Advertise on Yardsale search or Craigslist. You can also create yard sale signs and place them around your neighborhood.
4. Sort your items and organize them by categories– toys, clothes, kitchen supplies, etc.
5. Make sure you have tons of change.
6. Be friendly and work the crowd. Try to start a conversation with your potential buyers.
7. Give away all the leftovers to a charitable institution. Use the donation to get a tax deduction (for charitable donations) on your taxes.

Doing a garage sale also allows you to connect with your neighbors and make new friends.

Day 26 – Create A Budget and Stick To It

If you have less stuff, you’ ll generally save more money. But, living a minimalist lifestyle is easier said than done. This is the reason why you should create a budget and stick to it.

✓          Create an inventory of what you already have. This way, you will not end up buying duplicates.

✓          Buy high quality goods. Prioritize quality over quantity. Always research what you want to buy first before buying.

✓         Before you place an item in your budget, ask yourself at least three times if you really need it.

✓          ALWAYS pay in cash. Do not  buy anything that you could not pay for in cash.

✓         Classify your expenses into the following categories– rent/mortgage, utilities, car insurance, gasoline, retirement fund, food, medical expenses and health insurance, cellphone bill (optional).

Try to buy a prepaid phone. This will help you save a lot of money. And also, you do not have to spend money on gym membership. If you want to lose weight and keep yourself fit, walk or bike to work. This will help you save money and it keeps you fit, too.

Here’ s a monthly financial planner that you can use to create a budget and track your spending.

MONTHLY BUDGET
Month	January
Starting Balance on the bank account	$1,000.00
Total Income
Total Expenses
Incom e– Expenses
Income for the Month of January
Wages
Tips (if any)
Gifts and contribution
Investment interests
Other
Total Income
Expenses for the Month of January
Transportation
Groceries
Personal Supplies (soap, beauty products, medicine, etc.)
Clothing
Entertainment (cable, concert tickets, movie tickets, theme park fees, etc.)
Education(Ki d’ s tuition fees, etc.)
Food
Cleaning Expenses
Total

Remember that this is just a guide. You can create your own personalized financial planner using Microsoft excel to cater your special needs and expenses.