- Write down ALL your expenses
- Group your expenses
- Set a goal
- Check your bank accounts
- Use cash
With anything new, its best to keep things simple and start from the beginning. Money management is no different. Even if you’ve tried many times before and it hasn’t ended up how you had hoped. These steps have helped us manage our money for many years, allowing us to achieve financial resilience. The great thing about it, is whenever we had strayed from our plan, there was an easy process to get us back on track and return to monitoring and managing our progress.
So why is this plan any different to all the others on the net? Fact is, maybe it isn’t. But what it is, is a tried and tested way for us. This plan has helped us navigate our way through paying down multiple debts with low wages, surviving on chicken and rice dinners to help keep our grocery budget down. There may also be one point I make in this blog that may spur you on to give this ago. After all, my goal and passion here, is to help people build financial resilience that will enable a successful future.
1.Write down ALL your expenses:
The absolute starting point is to know where you are with your expenses, right now, today! Get a pen and paper and start writing down all your bills, expenses and things you spend your money on. In order to achieve any kind of success, you must be honest with yourself and add absolutely everything.
2.Group your Expenses:
Now that you have written down all your expenses, its time to group them.
Start with 3 types:
- FFFI Food, Fuel, Fun & Incidentals
- Bills reoccurring weekly monthly living expenses
- Needs & Wants Needed purchases and wanted items
3.Set a goal:
This is essential for your success and is the ‘why’. This will help you to know where your money is going, to keep you on track. Look at your situation, look at your bills and now look at your savings. Where do you want to be in 6 months, 12 months or even 2 years? Start to set a plan or a budget, no; let’s call it a spending plan. An easy to follow guide that allows you to be able to track your money in line with your goals.
4. Check your bank statements
One practice we follow is checking our bank accounts regularly. If you’re not, you should be. What are we looking for? Over charging on your cards and tracking overall spending. This is the best way to track where your money is going.
5. Use cash
This brings me to using cash. Don’t under estimate the benefit of having cash in your hand. There is no better way, with having notes in your wallet or purse as an indication of how you are tracking in the spending department. A tip, use cash for 2 things; First is for your grocery shopping, it doesn’t take long for it to blow out with tap and go putting your spending off the rails. Second use cash for your spending money, once it runs out wait for next pay.