Practicing The Financial Order of Operations

This post may contain affiliate links which may compensate us based on your interaction at no cost to you. Please read the disclosures for more information. ​​​

Are you working your 9 to 5 job and taking home a paycheck or running your business but still struggling with debt?
Many people are and the idea of personal finance overwhelms them because they feel the financial aspects are compound.
The fact is you do not need to do everything at once, you need to focus on the basics. Lawrence Delva-Gonzales shared these basics us in the episode 92 of The Money Exchange Podcast. I am sure you have heard them from every financial expert you know to a financial blog or social media post. 
Lawrence filled us in on the aspect of The Financial Order of Operations. It requires one to do the following: 

•  Decrease their expenses
• ​Increase their income
• Make an investment​

---

Lawrence filled us in on the aspect of The Financial Order of Operations. You must be thinking I know this so the question is why haven’t you put them into practice?

Today, we break down each one of them and how they can help you work towards a debt-free life.

Decreasing Your Expenses
Many people have become used to living a certain way and the idea of making changes that may force them to cut back on things they see as essential seems challenging.

A better outlook at reducing your expenses would be perceiving it as having better control of your money.

Here are a few tips you can practice to decrease your expenses:

• Re-evaluate your subscriptions

From weightloss subscriptions, tv, cable, internet to cellphones among others, take a close look at them and ask yourself how much you use or need them. TruBill can help you with that.

• Reduce electricity use.

Electricity is vital for each household however it becomes a hefty expense in the long run because it is being utilized for a million things in the house. 

Some things you can do to cut those expenses are immediate: Don’t leave the computer running, don’t run the dishwasher without a full load, hang out the laundry instead of running the dryer, turn down the thermostat. Shop around to see if there are utility providers that offer lower rates, particularly for fuel.

• Lower Your Housing Expenses

You don’t need to live in a 4 bedroom apartment as one individual yet you can move into a one/two-bedroom apartment and save yourself a great deal of money. 

Another option would be to move to a cheaper location, the cost of living varies in different states in the US and if living in one state is stretching you, you are at liberty to move. 

For those who own homes, you can consider renting out a portion of your house or setting up your other properties like a beach house for AirBNB so it can make you a couple of dollars rather than it lying around waiting for a weekend you decide to visit. 

• Eat at Home.

Meal prepping can save you a great deal of money. You have to be intentional about creating a plan and sticking to it. QubeMoney will help you budget for these expenses. 

Here are a few tips to increasing your income
An increase in your income can create a significant change in your life and there a number of ways to do that like: 

• Another source of income.

If you are capable of taking on more work, another source of income to complement your main income. You can do administrative tasks as a Virtual Assistant. You can also earn extra money passive promoting other businesses products, services and course. Learn here how to be a master at it. 

• Ask for a pay rise.

This step requires confidence in your skills and what value you provide to your employer.  If you are sure of those, be bold and speak to your boss about a raise. You will be in shock at how your request will be granted. 

• Make money from a hobby/talents

Have you been singing in your bedroom or shower? Take a chance on your talent and sign up to sing along with a band during favorable hours. If you are an artist, take advantage of your great hand and create amazing pieces and sell them on Etsy or via your social media. You can profit with the talent you have, don’t sleep on it.

• Create an online course/digital product

If you have a skill that people have shown interest in, you can transfer your knowledge into a course and sell it to those interested. With this digital era, you can easily promote your course via different platforms, and no doubt if what you have to offer is on-demand it will sell. 

• Make an investment

If you put into practice decreasing your expenses and increasing your income then you will have enough finances to make a profitable investment. This is simply making your money work for you. It is also a way to plan for your future because a great investment can set you up for a lifetime. Investments like stocks, bonds, or mutual funds will grow in value over time. 

It is possible to overcome debt however creating a plan to do so comes with work and dedication. It requires a high level of commitment and discipline and if you are consistent over time you will reap the benefits. 

Lawrence Delva-Gonzales, The Neighborhood Finance Guy, is proof that when you intentionally work towards a debt-free life it is possible. Listen to all the gems he dropped in episode 92 of the Money Exchange Podcast
​