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The Wise Investor


2.3 Controlling expenses
Rested and refreshed, John prepared to tackle the
next topic on the agenda.
"I hope that I have been able to illustrate," he
said, "the benefits of being organised and budgeting
your money. In fact, if you don't become more
organised, the other things I tell you will do more
harm than good."
John had made his point, and Kate listened in
anticipation for his next words.
"Having gained control of your money," he said,
"the next step it to have more of it."
Kate liked the sound of this. At last he was
getting down to the real business of getting more
cash through the door.
"Improving your cash flow," he said, "involves
reducing your expenses and increasing your income.
First, I will talk about reducing expenses, as this is
the first area you should tackle. You have more
control over your expenses, and any improvements
you make usually take effect right away.
First, as we have already discussed, it is essential
to record your expenses and work out where all
your money is going. A month's worth of figures
would be a good start, and the longer you record
things the better. Take each expense, no matter
how big or small. As the old saying goes, 'if you look
after the cents, the dollars will look after
themselves'. This is very true, my dear.
Every expense, no matter how small, should be
examined. Think about ways to reduce or eliminate
each item. Many things can be bought more cheaply
by shopping around and planning ahead. Have a
close look at all your insurances. Make sure they
are not too small or too large, and don't pay for
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