MONEY MANAGEMENT
One of the great benefits of Living Tiny is living below my expenses. This means that I earn more money than I spend. Every week and every month I have a surplus of money. That extra money then goes into savings and investments...planning for the future.
Because I spend zero dollars on rent; zero dollars on a mortgage; and I spend zero dollars on electricity bills...that is money saved!!!! My Tiny Home gives me shelter and solar power gives me plenty of electricity with which to run ALL my appliances. The solar power also offsets my use of fossil fuels. During the average day my Tiny Home actually generates MORE electricity than I actually use. My Stealth Van has essentiallly been converted into a solar powered HYBRID vehicle.
What I do spend money on is:
FOOD
GASOLINE
INSURANCE
MAINTENANCE
ENTERTAINMENT
PROPANE
WATER
In exactly that order...with the most expensive (FOOD) descending to the cheapest (WATER).
So, let's talk about how to manage that money!
We are going to look at 4 areas.
INCOME & SAVINGS AND SPENDING & DEBT
Most people in our Society have Big Debt, Big Spending, Moderate Income and Small Savings.
Average American financial priorities:
#1 SPENDING
#2 DEBT & DEBT REPAYMENT
#3 INCOME
#4 SAVINGS
The FINANCIALLY HEALTHY Americans prioritize as such:
#1 INCOME
#2 SAVINGS
#3 DEBT REPAYMENT
#4 SPENDING
LET'S LOOK MORE AT THIS ON THE NEXT FEW PAGES....
