This week is straight out of the Control Freak Manual, it’s the jingle jangle of your pockets, it’s the hole in the wall, it’s the old fashioned way of paying for “stuff” good old CASH.
Now we tend to be creatures of habit, so if you have always preferred cash, because you know where you are every week, for example; if you have not got enough money, you can’t spend it sort of thinking. Or perhaps you like to feel you are in control of your money and perhaps “pay” yourself an allowance for the week to live off and save the rest for a rainy day.
There is one major problem with cash … it is VERY difficult to TRACK, and therefore tends to becomes a great big “miscellaneous” in your home budget or home accounting.
To be fully in control of your spending, you need to keep a track on your CASH withdrawals …. not just you, but EVERY member of the family.
Buy a pack of small notebooks, and make a record of CASH spending each day for ONE MONTH … then swap notebooks with another family member, so you can be accountable to someone for every single penny. Explain WHY you NEEDED to make that purchase!
An example would look like this:-
Month of July : Family member Mr Spendy Spenderson
3rd July : Cash withdrawal £ 60.00
£ 30 football night at the local pub
£ 10 lotto ticket
£ 20 play station game on special offer
9th July : Cash withdrawal £ 50
£ 15 extra fuel & sandwich on long journey to work
£ 35 new electric hedge trimmer — half price offer
This is where the preparation pays off, the purpose of all these weeks put together so far is to grow the gap between your Income and your Expenditure, just as you would in business, the amazing thing about the formula is that just a 10% difference, if put into the Control Freak Recipe would clear a mortgage, loans and credit cards OFF in 8 years or less WITHOUT DOING A SINGLE OTHER THING! Amazing isn’t it? That is why the website is named “Pay Off Your Mortgage in 8 Years or Less” plus the fact that it easy to remember of course!
So let’s base this week on the average reduction on spending cash recklessly or sub consciously over the month, we usually find that the saving to be achieved is around 50% less than your current spend. So for the purposes of the Pay Off Your Mortgage Challenge I am using £ 50 per month saved and added to the Mortgage Freedom Payment.
Any savings that you make should be added to your Freedom Payment each month and used to Pay Off Your Mortgage in 3 Years or Less. Anything else & it simply will not work.
