Updated: Aug 3, 2020
Sorry for my delay of almost 1 month in relation to my last publication of the previous rule.
The reason for this delay is due to the fact that I moved and set some temporary and urgent priorities. I hope to be forgiven, but I think my justification is valid.
Thank you for your patience. My respect to all!
Now about the 4 rule. Cut expenses and save money faster.
No matter how hard you try, before the end of the month you still don’t have enough money to pay you’re bills?
If this is the case, here’s something you can and should do.
There are several things that you can and should cut from your budget and you will see that you can save more money to ease your expenses. Without having the courage to do this, the “bottom of the well” will always be closer. You have to start now, today without blinking.
One of those cuts is in banking transactions. Every time you transfer money, make a payment, you have bank charges averaging 5 to 10 dollars a month in your account. If you think about it, those charges fees could pay a monthly fee for example Netflix or something like that. You have to negotiate with your bank and avoid paying those costs.
If you change banks and present this explanation, they will be able to make you a proposal and reduce these costs or even in some cases cancel them.
The second cut you can make is gambling. Avoid going to the Casino, playing the lottery so many times. Is an addiction. You save a lot of money. I don't want to say not to play but at least play less or only once a month, because it is not easy to win and then you will regret it and think how much you would like to have that money back. The probability of winning a jackpot is minimal.
Third cut. Avoid credit cards. Pay with cash, because every dollar you pay is subject to an interest rate, that is, the amount you pay will never be the same.
With cash in hand, you control more what you have in your wallet. I know it is less safe to carry cash, but temporarily you will have to.
Fourth cut. If you are enrolled in a gym and the premium monthly fee is very expensive and requires a heavy annual subscription, look for cheaper alternatives. Get it over with as soon as possible and do sport outdoors. Even because the estimates tell us 80% of the population enrolled in gyms, ends up giving up between 6 to 8 months later.
Fifth cut. Warranties in the purchase of products. It is true that any one of us can be unlucky and the phone breaks, the washing machine breaks down, etc. So when we buy the equipment we are offered special warranties and extra insurance, often without any need. For a while you avoid these extra warranties and insurances, or subscribe to the minimum. Take good care of your equipment and try to be more cautious.
Sixth cut. Stop wanting to impress others. We all know that there is a huge tendency to buy many things we don't need, with the money we don't have, to impress people we don't like. It is in our human nature for centuries. This attitude will not make you happier, for sure. Change your mind as soon as possible. Spending to impress is not at all advisable.
Invest more in your personality and less in your wardrobe. In addition, if you invest in that change of mindset, you will soon be impressed by the money you start saving.
So when you go shopping, ask yourself if what you are going to buy is truly important and necessary for you or for others.
Stay safe and have the courage to be smarter.