Welcome to Radical Personal Finance, the show dedicated to providing you with the knowledge, skills, insight, and encouragement you need to live a rich and meaningful life now while building a plan for financial freedom in 10 years or less.

Today on the show we continue our theme of an analysis of

expenses. As we released this show in January it's a convenient time to do an

analysis of the 2017 financial data that I hope you've accumulated over the past year.

And I want to focus on how expenses will relate to your plan for financial freedom. On yesterday's show I talked about the value of

grossing up expenses, things that are monthly for example looking at them in terms of their

annual cost.

In previous episodes of radical personal finance, I've talked about the value of converting

annual costs to decade costs and considering them in different frames of mind.

I also talked about the value of cutting those costs down and looking at them on a daily basis

so you are clear on what your daily expenses are.

This can be very illuminating, either in a positive

direction or a negative direction. Sometimes you look at your expenses and you're very

satisfied with them that, hey, wow, I'm able to live on that small amount a day or

I only spend this small amount per day on this category

That's great sometimes it goes the other way and it's a little bit sobering to recognize

I spend how much per day? Both of those can be valuable and give you insight.

But the next method of analysis that I want to encourage you to do is to

order your expenses from most expensive to least expensive and look at them very carefully.

When we come to financial savings,

when we come to the area of spending less money.

There are various ways that you can approach this.

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