SMS 160 – What is Financial Sacrifice?

What is Financial Sacrifice?

Sacrifices are choices we make not circumstances that are imposed on us.

There is a difference between being in a bad situation from a series of unforeseen and unfortunate events and being in a bad situation from a series of bad decisions and poor planning.

Noun – destruction or surrender of something for the sake of something else

Verb – to suffer loss of, give up, renounce, injure, or destroy especially for an ideal, belief, or end

What is financial sacrifice?

  1. Give up or forego something you want – not need something you need
  2. Doing something you choose to do – not something you have to do
  3. Short-term discomfort for long-term gain – it should be hard and uncomfortable
  4. Necessity is the mother of invention – they are not obvious and have many layers
  5. Sacrifice is not something you do when things goes wrong (that is called crisis management)it’s something you do to insure things in the future will go right.

Why you should make financial sacrifices:

  1. You believe tomorrow will be better than today
  2. If you have lived too much for today and not enough for tomorrow
  3. You want something nobody else has so you have to do something nobody else does
  4. You want more control in your life – independence requires being independent

Three Sacrifices We Must Embrace to Achieve Financial Freedom – Medium.com

 

Sacrifice #1 – Spending

The first sacrifice we have to do is to limit ourselves to a budget and avoid spending all our income. There is no way around it. If your spending habits cannot be controlled, then forget how much you earn. You are going to spend it all anyway.

 

Sacrifice #2 – Income

Financial freedom will for most us come out of 3 vectors: income, savings, and investments. If we want a raise, we will likely have to do a harder job or work more hours.

Sacrifice #3 – Risk

This next sacrifice comes from getting out of a comfort zone. Most of us are happy with the 1% rate on a savings account because we feel the money is safe and will never reduce in value. In other words, we have to take more risks and embrace volatility as part of the journey.

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