I have been fortunate my entire life not to worry about money. I am very blessed with what I’ve been given; however, I’ve decided to make a change, starting with my spending habits. After glancing at a recent bank statement, I’ve come to the conclusion that I spend entirely too much $$ on food. A large portion of that is eating out for lunch each day (mainly to free my mind from work) but a lot of unnecessary spending takes place for dinner and on weekends (not as easy to justify). If I visit the grocery store, I usually purchase 1 or 2 meals at most. This is what needs to change…
[“If I had 24 hours to chop down a tree, I would spend 23 hours sharpening my ax”]– Abraham Lincoln
…Now what relevance does this have? It explains the importance of preparation. Preparation is not limited to school-work or athletics, it also plays a huge role in financial freedom. On a small-scale, instead of eating at a restaurant I can easily map out my weekly meals which will soon lead to savings of over $40/week. I’m very excited about this savings I’ll be seeing in the coming months, but there’s more to think about. Nowadays too many people focus on small savings. People often compare toothpastes and choose the one that is 10 cents less, even though the utility of the more expensive toothpaste is greater than the difference in cost. It’s how we’re programmed to think, I too am guilty of it. We’ll then turn around and make a large purchase with little thought. For example, I have been blind for many years and recently received Lasik Eye Surgery to correct my vision (BEST DECISION OF MY LIFE BTW). Very kindly, my insurance provider covered 10% of the cost, leaving me $3950 (a pretty big purchase, regardless of budget). Had I opened a Flex Spending Account with my employer, I could’ve paid for the surgery with pre-tax earnings. That would have saved me roughly 1k. So what’s to blame? Lack of knowledge? Never! Lack of knowledge can always be overcome by preparation.
