Retire Early
Lifestyle
Retirement; like your parents, but way cooler
In 1991 Billy and Akaisha Kaderli retired at the age
of 38. Now, into their 4th decade of this
financially independent lifestyle, they invite you
to take advantage of their wisdom and experience. |
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Tracking your Spending is Essential
Tracking
your spending is essential to achieving financial freedom. Without
knowing exactly where your money is going, it is difficult to save and invest
effectively. In this article, we will explore the importance of developing this
habit and how it can help you retire early.
Many people believe that they have a general idea of where their money is going
each month, but when they sit down and track their expenses, they are often
surprised by just how much they are laying out on non-essential items. For
example, a daily coffee or lunch out can add up to a significant amount over the
course of a month or year.
Tracking your costs on a daily basis allows you to see where your money is going and make
informed decisions about where to cut back. By curtailing non-essential
expenses, you can free up more money to put towards your savings and
investments. This is the key to retiring early and reaching
financial freedom.
There are many tools available to help you in doing this. For example, you
can use a budgeting app or software to keep track of your financial outlay in real-time. This
allows you to see exactly how much money you are expending each day, week, or month and
identify areas where you can cut back.
In addition to helping you decrease expenses, tracking your spending also
helps you to identify areas where you can improve your financial situation. For
example, if you find that you are laying out a large amount on interest and fees
for credit card debt, you can work to pay it off and improve your credit score.
Finally, knowing where your money goes can also help you stay motivated. Seeing how
much you are saving each month and how your
investments
are growing can be a great motivator to continue lowering expenses and working towards your
financial goals.
In conclusion, tracking your spending is an essential step towards financial
freedom and early
retirement. By knowing exactly where your money is going, you
can make informed decisions about where to pare down and improve your financial
situation. Whether you use a budgeting app or simply keep track of where your
money is going in a
notebook, the important thing is to start this habit today.
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About the Authors
Retire
Early Lifestyle appeals to a different
kind of person – the person who prizes their
independence, values their time, and who doesn’t
want to mindlessly follow the crowd.
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