Last Friday me and my partner splashed out and ordered a take away. It cost around £40 ($49). It arrived really quick which was great, but to be honest, I could have cooked something more tasty (and warmer!) for a lot less money.
This got me thinking. As a ‘now and again’ purchase its not really going to change my financial life, but, if this became a weekly habit it certainly could.
You may be wondering how is this one weekly indulgence going to change mine or anyone else’s financial future?
Well, be patient, I’m about to tell you!
When you write blogs like this there will always be some people that will push back on some of the ideas in the previous posts such as how to build an emergency fund or save a freedom fund. They will state they just about have enough to cover all their bills let alone start saving.
If this means absolute essential bills such as rent, energy and food then yes, building an emergency fund will be tricky. However, if these bills also include regular expenses such as take aways, eating out, alcohol or extra clothes shopping then its time to get honest with ourselves.
How much are we spending on these not so essential essentials?
Having an emergency fund, a savings buffer to sleep easy at night is an essential to start your positive financial future. So if you don’t have one but are spending on take aways and alcohol then I have a challenge for you which could change your life!
I challenge you to give these non essential essentials up for just 10 months. That is the beauty of this challenge. Its not permanent, its just for 10 months. After that you can go back to them if you want to but just going without for 10 months will give you a life time of sounder sleep. You will know that any surprise expense that pops up you can deal with. You will also know if you need to use the emergency fund (for an emergency) you can soon build it up again after another 10 month challenge. Win win.
Still not convinced? Here’s the maths to tempt you.
If you are spending say $200 a month on take aways, $100 on alcohol or drinking out and $150 a month on non essential clothes (do you need that 10th pair of jeans?) Over a ten month period of cutting these out (and also benefiting your health!) you would have accumulated a mighty $4500 (£3600). You may then realise you don’t really miss the above and would rather save $4500 every year! To me sacrificing a luke warm Chinese each week and 15th pair of jeans is worth it to know I have that buffer in the bank for any unexpected expenses. For those still not convinced, even cutting these expenses by half would save you an impressive $2250 (£1800)
So if you’re ordering pizza and dough balls there’s no excuse for not having that emergency fund. Let me know if you are willing to take up the challenge!
Semi-Retire FIRE 