Careers,  Financial Clarity Coaching Blog

The Four Walls

Looking to get a handle on your finances? Great! 1st you need a budget, but before you start…

Do you know your 4 walls?

1. Housing
2. Transportation
3. Food
4. Utilities/Clothing

Seems straightforward right? We all need a place to live, a car to drive, food to eat, clothing & utilities like electricity, Internet, & water.

Here’s where people go wrong with their 4 walls…

1. Housing exceeds 25% of their monthly income. Too much home, too big of a payment.
2. Too much Car. They drive a car with a monthly payment of $500 or more.
3. Food. They are self proclaimed “foodies” spending hundreds (maybe even thousands) on eating out.
4. Utilities that include more than the essentials. They usually have cable Tv with all the channels, all the streaming services like Netflix as well as many “memberships” that are auto-debited every month. These folks often spend more on brand name clothing that later turn into donations.

The first step to financial success is understanding the four walls. Your four walls are essential, but they could also be what holds you back from a better financial future. Keeping each wall basic, managing Lifestyle Creep, avoiding “the Joneses”, and setting a realistic budget each month will get you there.

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