Wednesday, 8 February 2012

Trimming the Fat

I assumed my debt wasn't out of control because I had a very extensive budget.  But a very extensive budget didn't ensure my financial stability.  The mere act of having a budget wasn't enough to keep my spending habits align with my limits and goals according to my very extensive budget.  Going broke forced me to take a hard look at my own bottom line. 


We've all heard the term.  Trimming the Fat.  A metaphor to show the act of maximizing and utlizing cash flow.  According to my budget I had already trimmed my fat.  I felt fully secure in believing that I was making the most out of every penny that was coming through my bank account.  I had assumed that there was simply no way I could reduce my monthly spending by another cent!   

However, going broke and accepting help made me re-prioritize my finances.  I set easier, more specific goals.  Achievable goals.  Goals I could control and keep an eye on.  I knew that my savings and emergency fund were virtually decimated and if I was truly going to be prepared for my future, and the surprises synchronous with life, I had to find extra money in creative places for those days that I would need extra cash on hand.

Who can honestly say they have extra cash on hand?  Extra cash on hand.  Not many, I assure you.  Those lucky few who do end up with extra cash on hand are rare, and boring, I'm sure.  It takes money to live a life!  It takes money to try new things!  It takes money to pursue most hobbies!  Those with extra cash simply aren't doing enough living.  But because of my living habits I found that since I had NO extra cash on hand, I was in danger of using my credit should something unfortunate happen.  

That's not even fair.  It doesn't take something unfortunate to happen to be in need of a few extra $20's.  Life is full of ways to make us spend our dollars.  And life is also full of surprises.  For those surprises I knew I'd need to start saving every nickle I could to reduce the amount of credit I would have to use, since credit is what got me in this predicament in the first place!  

So I did it.  Through newly rationalized priorities I managed to squeeze honey from a stone.  I found extra fat on my budget and shaved off some extra cash each pay cheque.  I learnt that every dollar counts, and that if I don't have to spend one, I won't.  One day I'll be able to save towards more luxurious spending, but for the time being a dollar saved is one more in my pocket.  I have the comfort of knowing that in an emergency, albeit, a small emergency, I will not have to pull out my credit to save myself from an unforeseen expense.

1 comment:

  1. I like the message here. What are some things that you stopped doing or did less of in order to find the extra money to save? A friend of mine started making her own laundry soap. She says it costs her 3 dollars only to make laundry detergent to fill big bottles. The bottles last for months. Anything like that? I recall eating Mac and Cheese for days when I was a student to make 10 dollars stretch. Those days a pack of mac and cheese was just under a dollar.

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