Money Basics Part III

Today, let’s discuss money outflows.

For some of you, this will be an easier exercise than the money inflow exercise.

Money outflows are money that you owe to someone else. It doesn’t matter if this is rent, mortgage payment, car insurance, or money your best friend gave you to cover the bar tab from last night.  The purpose of this exercise is to figure out where all your money is going so you can decide whether that is the best way to spend your money.

I know that sitting for 15 minutes and writing down all the money outflows that come to mind seems like a waste of time. In your current situation, you know that Money comes in…. Money goes out. The end of the month shows up. Maybe there is still money left when the next paycheck arrives.

However, in my experience, it was not until I started writing things down and tracking them that I was finally able to get a handle on my financial situation.

• For those, like me, that need to ‘see’ things in black and white this exercise is for you.
• For those who are struggling and unsure where their money is going each month, this exercise is for you.
• And for those who feel this is a colossal waste of time because you KNOW where your money is going and that there is no way to get out from under your current situation, this exercise is ESPECIALLY for you!

So sit down now, with a pen and paper, and write for the next 15 minutes about all your money outflows.

I believe in you!