Now that we've dug our Money House foundation deep by committing solidly to living on less than we make, and the foundation is now poured according to our income, next we need to put up the walls to protect us.
For our Money House, the four walls we need are the expenses that allow us to survive. Just like walls protect us from the elements in a real house, accounting for these expenses first should help you feel safer as you continue to build your Money House.
The thing is, these walls are limited by the foundation on which they sit. I doubt you have ever seen a house with walls that are based off the foundation and thought "that is solidly built!" Our four walls must be supported by our foundation, our income. So, what are these expenses? They are below:
Notice that each of those is something necessary for you to live. We all must eat, be protected from the heat and cold of the seasons, have clean water to drink, and also be able to get to and from work. Now, say you have allocated money from your income to cover these expenses? Would you feel safer financially?
Would you have more confidence about the next day or week knowing you can still put food on the table and the lights won't get shut off?
In our Money House, our budget, these are the expenses that should be covered first, before anything else like minimum credit card payments, student loan payments, and especially money spent on fun. At first it may seem daunting and discouraging, but this is how to build a solid Money House in which you can rest instead of feeling trapped.