I Am Net Worthy

The previous reading and video explained just how sneaky and dangerous financial streams can be. Welcome to the Monthly Stream Expenses Calculator, where you can take a look at just how much streams are affecting you. Warning: prepare to be shocked! 

To help get you started, below is an explanation of the major categories of stream expenses. Streams are broken down into these four primary categories, with one page in the calculator per category:

1. Precommitted Streams

A stream is considered precommitted if you’ve made a formal agreement to pay over a specific period of time. Usually a lease, or some other form of contract is involved. Typically, you’ve also provided some kind of payment pre-authorization (credit card or bank/credit union). You might be able to shut off this kind of stream, but it may involve a financial penalty if you do. Sometimes the best thing to do is to let it run its course, then replace it with a smaller stream, or not at all.

Rent and mortgage payments are included in here, too. They’re special kinds of streams to consider (see Volume 5 of the I Am Net Worthy series, Houses) because you have to live somewhere; even so, the same familiar “stream mentality” and all of its pitfalls often comes into play. Something to consider: if you’ve got some extra space, and want to really cut your stream down to size, consider what adding a roommate/tenant or two would do to your monthly living expense stream. These may be the hardest, most inconvenient types of streams to change, but they can also be where the biggest opportunities to reduce total streams are.

2. Insurance Premiums

This category of stream is special in that we’re definitely not encouraging you to cut down on your streams by eliminating whole insurance policies. Instead, the idea is to see if there are sensible ways to cut down on the overall insurance stream. One way to do that is to investigate bundling, i.e. get a single insurance carrier to provide multiple policies for you, such as car and renters/homeowners policies. Another possibility is to raise some of your key deductibles in order to reduce the monthly premiums. 

3. Prearranged Streams

The modern world makes certain things sooo-ooo convenient - like spending your money. Widespread connectivity, smartphones and thousands of apps have combined to make spending money virtually effortless and instantaneous. That’s where “prearranged” streams come in. Unlike precommitted streams, you haven’t specifically made any obligation in advance to spend a specific amount. But it’s just so darn convenient to spend, that you usually do - month after month. 

“Prearranged” means you’ve already established a relationship or account, and a convenient way to pay. Food delivery services. Ridesharing services like Lyft and Uber. Amazon. All kinds of entertainment content, from Netflix to Spotify to Hulu. No one of these may be huge, and (you tell yourself!) ”I can cut these to zero any time I want to.” Maybe so, but it’s certainly worth going through the whole prearranged category and getting a good handle on the total amount that’s “conveniently” coming out of your financial bathtub each month.

4. Everyday spending habits

These don’t need a special explanation; the help bubbles in the calculator will give you all the guidance you need. You’ll get the idea right away.

Dive right in, and good luck!

Click HERE to access the Stream Expenses Calculator.

Complete all four pages of the calculator, then SCREENSHOT the summary on p1, and save it for future reference...

OR complete all four pages of the calculator, then write down your total stream expenses and the four subtotals, and save for future reference