Monthly family expenditures range from perhaps ten to over 200 purchases.
Sure you can try to lower every expense or you do what a wise woman in Tennessee did:
Eliminate or drastically reduce just one huge expense each month.
The 80/20 Principle (Pareto Principle) teaches us that most of our financial troubles stem from just a handful of expenses.
As I have helped families create spending and investing plans (a euphemism for a budget) I help them gain massive momentum by targeting housing, taxes, and transportation expenses.
About 35% of all household income is allocated to housing, taxes, and transportation.
Why not focus the majority of effort on those few categories that offer the greatest return on effort?
Don't try to save $10 on food until you have saved thousands by properly managing your top expenditures.
(Photo courtesy Wikipedia)
Recent Comments