The Four Expenses Types And Why You Must Know The Difference
How many different types of expenses do you currently have in your money outflow?
That almost sounds like a medical question, doesn’t it?
Don’t worry, this is totally a money conversation – but what you’ll discover in this article could be the very thing that is making your flow feel damn uncomfortable… or a sheer joy!
I’m talking about the quality of the outflow of money from your life.
Outflow is made up of all the expenses we choose to have. We tend to cluster them all together as one big category: EXPENSES!
But, in truth, not all expenses are the same. In fact, I’ve discovered there are four main categories, or types, of expenses – you need to know what they are and how much of each you have in your outflow in order to create the wealthy life you want.
When you look at your own outflow I’m guessing you have all four types of expenses.
Now that in itself isn’t a problem. Although some of these expense types are pretty dodgy and don’t add to your wealthy life in any way, it is the quantity of each of the different types that matters.
In the gastronomic world, it is the relative quantity of one ingredient in relation to another that either makes the whole a glorious, saliva-inducing taste orgasm… or a “my life would be significantly better if we had never met” type of experience.
In the Wealthonomic world (yep – I did make that up), the relative proportions of these four types of expenses in your money outflow have pretty much the same impact.
A certain combination of expense types could be creating a juicy, saliva-inducing, wealthy “orgasmic-life” type of experience, or a different mix could be keeping you in the poor life desert – a bleak, dry, life sucking never-enough-money type of experience.
That is why you must know what these four expense types are and how to have more of the good types and less of the wealth-sucking ones.
That is what the video linked to this article is all about…
Once you’ve watched the video ask yourself this…
- Do I have “unconscious” expenses robbing my wealthy life?
- What percentage of my expenses are “Hell-Yeah!” expenses?
- How are my outflows impacting the quality of my life and my path to financial freedom?
If you find you have some “unconscious expenses” and your “Hell-Yeah” category is dangerously low, then you know where to focus to make a dramatic shift in the quality of your life.
Your focus needs to be on the back door!
Your wealthy life is created by the quality of your spending, not by your income.