Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
Expenses A ? What Are They And What Can We Do About Them > NetSparsh - Viral Content you Love & Share

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:


USA TODAY

Pete the Planner: Road to early retirement may be bumpy - USA Today
USA TODAY
You will need some luck to ensure financial success in early retirement.

and more »

USA TODAY

Personal finance: 15 smart things you can do with $1000 right now
USA TODAY
A thousand dollars might be pocket change or a rounding error to multimillionaires and billionaires, but it's a meaningful sum for the rest of us. Any amount of money that we can save can be put to good use. Here are 15 examples of smart things you can ...


Unexpected Costco bargains and whether a millionaire daughter ...
MarketWatch
My daughter earned millions at Google, but her boyfriend has student debt — should she get a prenup? This father wonders whether his wealthy, smart daughter ...

and more »

Chicago Tribune

Personal finance experts reveal their favorite money apps
Chicago Tribune
Both David Bach, nine-time New York Times best-selling author of books such as Smart Couples Finish Rich, and J Money a personal-finance blogger at Budgets Are Sexy, are fans of this app. “You won't get rich off of this, but it's a great way to dip ...


Benzinga

In Its 10th Year, Personal Finance App Mint Is Investing In AI, Data ...
Benzinga
Mint, the personal finance app owned by Intuit Inc. (NASDAQ: INTU), could be transformed by artificial intelligence and machine learning. That's according to ...

and more »

After painful personal loss, managing money looms as key challenge
Minneapolis Star Tribune
A thoughtful personal finance guide for recently widowed or divorced women is "Money Confidence: Smart Financial Moves for Newly Single Women," by Kerry Hannon. Hannon is passionate about helping people gain control of their finances and her book is ...


USA TODAY

How to invest without losing money
USA TODAY
... bonds offer generally stable returns with very limited risk, and in some cases no risk at all. The problem is that safety comes with a price. CDs, to examine one cash equivalent, constitute an agreement in which you give your money to a financial ...


Forbes

How To Stop Boring Students When Teaching Personal Finance
Forbes
My mission for the past seven years has been to help students and recent graduates develop healthy money habits and build the foundation for a lifetime of financial wellness. As the co-founder of the Harvard University Personal Financial Management ...


4 Personal Finance Tips From Billionaires
Motley Fool
You may be looking for an edge in your personal finances -- something that can help you rethink your approach to money and start getting ahead financially. If so, you might benefit from hearing what billionaires have to say and learning from their ...

and more »

Theodore Decker: Personal finance skills remain elusive
The Columbus Dispatch
There are a few fixed rules in our household. The most-rigid is that I am not to pay bills, make independent financial decisions of any kind or handle sums of money over $60. As someone often startled to look in a mirror and see a middle-aged guy ...

Google News

The Origins of Check Writing

People haven't always written checks to buy goods and services.... Read More

Retirement Income Needs---Less Than You Think?

It is widely written that you need 75% of your... Read More

Improve Your Professional Image Using Address Labels

One of the simplest ways to improve your professional image... Read More

Strategies for Success

Holy Shenanigans! More STUFF?Loosing one's business due to lack of... Read More

Risky Business: You May Not be as Daring as You Think

I thought I was through with exams when I finished... Read More

Grocery Savings - Your Kitchen is a Goldmine!

Your food budget is the most flexible area of your... Read More

Family Money Management: The Importance of Agreement

Are you having problems with debt? Are you afraid to... Read More

How You Feel Affects How You Shop & How Much You Spend

Have you ever stopped to think about how your "mood"... Read More

How to Save for A Down Payment

Saving for a Down Payment is hard work, so it's... Read More

If I Had a Structured Settlement, I Would Use It to Pay for Gas

Has anyone been to the gas pumps lately? Soon $3... Read More

Creating A Household Budget

Creating a budget can be a very difficult task. Although... Read More

How to Save Money in a Grocery Store

Now there are ways to save money in the grocery... Read More

Are You Ready To Be Fired?

Your boss has just informed you that your department is... Read More

The Changing Shape of Family Finances

Super-mumsIt seems that the proof of maternal efforts is no... Read More

Save Money on Groceries: Part I

One universal of humanity, no matter who you are or... Read More

Planning Your Financial Future

Millions of people give a lot of thought to financial... Read More

Debt Management ? More Ways to Save on Gas Consumption

The price of gas continues to climb, and with continued... Read More

Financial Security

1) HOW TO LOOK FOR A JOBA) The Chronological Curriculum:1.... Read More

Budgeting is Essential for a Single Mothers Success

Today many women are struggling with debt and it's even... Read More

How To Protect Yourself Against Identity Theft

Identity theft is a serious crime that continues to grow.... Read More

Healthy Eating On A Budget

It is possible to eat a healthy, balanced diet without... Read More

Single Mother Resources Directs You Towards Success

As a parent you are bound to face a few... Read More

The Good and the Bad of Money Management

Good money management needn't be difficult. In fact, there a... Read More

Help With My Annuity

The cries are heard from the distance, "I need help... Read More

Budgets And Eating - Can They Co-Exist?

Whatever your reason for having a tight budget, the truth... Read More