Step 1
Successful money management is a process. Take the first step.
Step 2
This quick quiz will help you find your starting point.
Step 3
Sorting out your paperwork will make record keeping a whole lot easier and set yourself up for success.
Step 4
Knowing where you are today can help you determine the best path towards helping you meet your financial priorities.
Step 5
Good credit is essential. Know how to check this.
Step 6
Determining your net worth sounds harder than it really is.
Step 7
It is time to ask yourself, is your debt too much debt?
Step 8
Identifying needs and wants keeps you focused on what matters most!
Step 9
Don’t just set goals, set SMART goals
Step 10
Develop time frames around your SMART goals and map them out.
Step 11
Paying off debt is a short term financial goal that will free up cashflow.
Step 12
Emergency savings make the difference between a financial setback and a financial disaster.
Step 13
Saving for retirement is a non negotiable financial goal.
Step 14
Make a commitment to stay on track.
Step 15
: Now you know what you need to do, here is how to start
Step 16
Find out where all your money is going!
Step 17
Identify your fixed expenses.
Step 18
Plan for your periodic expenses.
Step 19
Create your spending plan.
Step 20
Small changes can make big savings.
Step 21
Saving money on your groceries, is one of the fastest and easiest ways to improve your bottom line.
Step 22
Know where you want to be and how you will get there
Step 23
Give yourself some peace of mind by making sure your family is on some firm financial footing
Step 24
Commit to making informed borrowing decisions, and understand the costs.
Step 25
To stay motivated, acknowledge the benefits you will experience as a result of your efforts.
|
|
Step 16:
Where does all the money go?
For most people, financial health doesn’t depend on how much they earn, but how much they spend. To help you find out where your money is going, the next three steps involve tracking expenses. You will start with identifying variable expenses. Variable expenses are those that vary from month to month, such as clothing and food. You have the most amount of control over these types of expenses.
Download a copy of this excel worksheet . You will find variable expenses are at the top half of the spreadsheet
This spreadsheet not only allows you to record your actual spend but you can compare your actual spend with your budgeted spend at the end of the month.
I encourage you to get your printed bank statements and credit card statements and do this on a weekly basis so you do not get behind.
Another method of doing this is to use Xero personal. Click here for a demo and go to Personal Services. For a very low annual fee you can download your bank statements from the internet and code your spending.
While tracking variable expenses is only one of the 25 steps, you are encouraged to continue tracking expenses well beyond the time it takes to complete the 25 step plan. The longer you track expenses, the better your chances of success.
|
|
Find out where all your money is going!
|
|
|
