9 Year Mortgage: Reduce Your Expenses

Your retirement is a nest egg that you must protect.  We live in a world designed around buying things today and then paying for them tomorrow.  Most of the people you come in contact with are trying to separate you from your money.  Consider the following examples:

• Grocery Stores force you to walk through the majority of the store in order to buy something, hoping that you’ll make impulse purchases.
• When you go to the bank the teller offers you a new credit card or some sort of insurance product.
• The gas station wants you to sign up for a gas credit card to “save” on gas so they can collect interest.
• When you go to a restaurant the server will always try to upsell you on drinks, appetizers, and desserts.
• When you drive to work advertisers call for your money on billboards and the radio.
• When you come home to relax those advertisers attack again through your mailbox, the television, your email, and even your telephone.

We live in a consumption based society where a seemingly endless supply of credit is available allowing us to buy whatever we want whenever we want it.  But what are the consequences?  Here are some facts:

• The average American will spend 40% of their earnings on interest to banks and credit card companies.
• Over half of Americans will delay retirement because they are not prepared financially.
• 25% of homeowners owe more on their mortgage than their house is currently worth.
• Household savings is down to 1% of disposable income after hovering over 11% in the 1980′s.

The first step in reaching your financial goals is to understand and then reduce your expenses where appropriate.  Do you know how much money you spend each month on expenses?  If not, now is the time to start.  While many people are comfortable assembling a list of their expenses on their own, 9 Year Mortgage representatives are available to help those who might have some questions.  For great advice on ways to trim your expenses click here to view the 9 Year Mortgage Money Saving Minute web site.

Once you’ve established how much you spend on various categories like groceries, gas, eating out, vehicle expenses, housing expenses, and insurance, you can assign amounts to travel, gifts, and entertainment.  9 Year Mortgage can help you understand how your expenses compare to other people with similar incomes and family situations as you.  We can also help you identify your priorities, it’s important to understand what is important to you.  It’s ok to spend money on the things you love, as long as you cut back ruthlessly on the things you don’t.

For example, if you love to travel, then spend money on traveling once you’ve satisfied your debt obligations and your savings goal.  But that might mean you have to spend less on other things like eating out, buying a new car every few years, etc.

If you’re comfortable with numbers then you can probably handle this exercise on your own, but if you have any concerns, contact 9 Year Mortgage for expert advice on budgeting.  Once you’ve got a handle on your expenses, it’s time to take a good look at your income before finishing off with the 9 Year Mortgage Financial Plan.