Financial Friday: Tune in 2 Your Spending Part 1
In the last few posts for Financial Friday we have been talking about saving money, making savvy money choices and the like. This is a great place to start when you start to really Tune In 2 your finances … but there is one more area that we have not touched on, and this month is almost over… wait for it…
Yep I said it. That word that sooo many people really dislike. But today that all stops! In order to get a grip and Tune In 2 Your Finances, you really must own up and check out the numbers!
What really is a budget? It is simply a guide that helps YOU spend YOUR money! My guess is that you spend a LOT of money each month, but don’t know exactly where all your money is going. This is where this budget exercise HELPS you .
A budget will help you spend smartly
This week, we will start small….. just a first step into the land of budgeting really. No crazy hard math or impossible to understand spreadsheets, just simple addition and subtraction today.
Today I want you to get out a bank statement, and just fill in some of your spending to give you a START at knowing where your money is going.
- At the top of the sheet, write down the total amount of money you earn each month.
- Next, write down the big expenses that you know you have. I am thinking here about rent or a mortgage payment, a car payment, insurance and utilities such as electricity, water/trash and phone.
- Subtract the total amount of these big expenses from the amount of money that you earn.
Ta Da! The amount that is left over is the amount that you have the most control over and the amount that you can really make a difference with!
Some of you will have a lot more than you thought left over. This is the money that you spend each month on food (either at the grocery store or eating out), gas, movies, clothing etc..
Tune In 2 Your Spending
Now that you can see the figures on paper, you can start to take a hard look at your spending each day/ week and month.
This can be an extremely powerful way to “see” how much money you really do have control over each month. You really are spending this much money each and every month.
We hope you feel more empowered with your money as a result of this simple exercise.
P.S. Share your thoughts in the comments below or on Facebook!