Do Less by Rachel Jonat Page B

that actually bring value into your life.
    The goal with a minimalist approach to finances is simplicity and awareness. You want to have a good understanding of where your money is going and not feel burdened by dozens of bills that are hard to keep track of and that hinder your cash flow. Ideally, you want to pay bills automatically each month, so you merely need to check your accounts online periodically to see that everything is running smoothly. If you find it hard to track what’s coming in and what’s going out of your bank account each month, or if you are overwhelmed by the sheer number of bills, it’s a sign that your finances need a facelift. Re-evaluate everything beyond rent, utilities, and basic transportation.
    Start by making a quick list of discretionary and nondiscretionary bills. Nondiscretionary bills are things like mortgage or rent, and home, life, and health insurance. As you tally your discretionary bills, make a note of which bills could be renegotiated or possibly reduced. Could you renegotiate your mortgage and knock $50 a month off of it? What about your life insurance or home insurance? Call the agents and review what your policy covers, if it’s still appropriate for your life situation, and if they can offer you a better rate. Often one phone call can result in a few hundred dollars of savings each year.
    Look at your nondiscretionary bills with an open mind. What are you really and truly using on a daily basis? Everything should be on the table for elimination or reduction. Do you really need the most comprehensive cell phone package? Do you read the newspaper daily or does it just fill up the recycling bin? If you do read the paper, could you read one at the office for free on your lunch break and switch to just receiving the weekend paper? If you have an expensive cable television package and a digital video recorder, think about how often you use them. Could a Netflix subscription and streaming television shows online save you $100 a month? Be open to experimenting with cutting services. Get over the fear that these changes have to be permanent. They don’t. If you cut your cable package and then decide a few months later that you want it back, the provider will often offer you an incentive rate to get you to sign up again. Experiment with downsizing in different areas to find the extras and services that are easiest for you to part with.
    Get over the fear that these changes have to be permanent. They don’t.
Dealing with Interest
    If you’re in debt, one of the most disheartening and challenging results from this exercise will be seeing how much you are paying each month in interest or mortgage points. You’ll find more debt-reduction strategies in the rest of this book, but for now, look at ways to reduce your discretionary bills so you can put that extra money into your loans or credit card balances. Even a few small cuts to your “want” bills can free up money that will help accelerate debt repayment. For bigger wins on the debt-repayment front, look at larger expenses like rent and transportation and see if there is a way to live somewhere smaller and closer to work. Housing and transportation costs are two expenses we often think of as being fixed costs, and we often miss out on hundreds of dollars a month in savings because of that. Consider some short-term options like moving in with friends or selling your car and commuting by bike to makes big gains on paying off debt.
Reverse Budgeting
    Reverse budgeting is so simple that there’s no excuse not to try it. Here’s the gist: When income comes in, set aside an amount for savings, perhaps having an automatic transfer of 10 percent of your income into another account, and the rest is yours to live off of until the next paycheck. That’s it. When nondiscretionary bills like rent or your mortgage or medical insurance premium have been paid, the remaining money is yours to spend as you