Weekly Summary: MoneyMasterClass - Session 7
In a bid to streamline their finances, an individual has been implementing a series of practical and thoughtful measures, drawing inspiration from financial expert Gail's advice. These strategies, it seems, extend beyond vehicle loans and apply to spending in general.
The individual's approach is rooted in a deep-seated value for savings, ensuring it remains untouched. When contemplating a larger purchase, they wait 72 hours to assess if it's an impulse buy, serves a practical need, and is affordable.
In an attempt to reduce vehicle expenses, the individual aims to keep them under 15% of their net income. This focus has led to a reduction in unnecessary spending, a welcome development considering that vehicle expenses currently constitute 20.26% of their monthly budget, not including lump sum insurance down payments or vehicle maintenance costs.
The individual also practices regular decluttering, keeping two boxes for donations and selling. This minimalist approach, they find, reveals unnecessary spending and fosters a sense of gratitude for their core values.
Gail, in her Money Master Class, references a study suggesting that a cluttered space can have an impact on how one thinks and feels. While the specific study details remain unspecified, studies in environmental psychology research have shown that disorderly environments can reduce focus and increase stress, aligning with Gail's assertion.
The individual's last vehicle breakdown was covered by their parents, who found a good deal on a used car for purchase outright. This experience underscores the potential impact of high vehicle expenses on other areas of the budget.
In Week 1, the individual found value in focusing on their core values, a practice Gail encourages. Gail's tweets on this topic, along with her insights on vehicle loans, can be found on her Twitter account.
To curb overspending on groceries, the individual is making a conscious effort to eat down non-perishable items and is more mindful of their spending. The individual invites others to join them in adopting these financial strategies, encouraging readers to share the post with their friends.
Various options for sharing the post on social media are provided, making it easy for others to spread the word about these valuable financial tips.
The individual's personal-finance strategy includes budgeting for lifestyle expenses, aiming to allocate less than 15% of their net income towards vehicle costs. Their approach also involves practicing a minimalist lifestyle, selling or donating unnecessary items as a means of personal-finance management and fostering a sense of gratitude. Additionally, when making larger purchases, the individual waits 72 hours to assess if it's a necessary expense, an impulse buy or affordable.
