Not thinking about your money is what MAKES YOU POOR.
Not taking action with your money is what MAKES YOU POOR.
Not knowing where your money is going is what MAKES YOU POOR.
Then it pays, to know exactly how much your spending and saving.
For us, the best way to stay in control of your money, ensure we’re never stung by late fees, miss a credit card bill or overspend due to ignorance is to schedule a 30 minute date with our finances each week.
Now, you might think reviewing your spendings and savings ever so often is good enough – the problem with this is, if you have frequently over spent for a number of weeks or even months, then its very hard to crawl your way back.
So each week, we set some time aside, perhaps on a Sunday afternoon, to review your spending, paying off any outstanding bills and squirreling away some savings. This is how you can make that short 30 minutes work for you and your money:
Check in your budget
Firstly, grab a pen and paper and log into your bank accounts. Calculate all your expenses for the past week and ensure you have spent within your spendings and expenses limits. Then record how much you were under or over for the week. If you are over, plan how you might adjust your spending going forward to hit your budget and savings goals. If you don’t have automatic savings transfer set up, this is a good time to work out how much can transfer to your savings account for that week. It might not be much, but the point is about building a habit around sticking to your budget and saving.
Pay yo bills:
Then, for any bills you’ve been to lazy or hesitant to set up a direct debit for, pay them off, including credit cards, ensuring bills are paid early or on time so you aren’t hit with late fees.
Plan ahead for upcoming events
Finally, use this time to plan ahead for any upcoming events or big bills so they don’t unexpectedly smack you in the face. If you plan ahead for an upcoming event, you can adjust your spending accordingly over the next couple of weeks so can afford that new outfit without blowing a hole in your budget. It’s all about managing your spending.
If you’re still not convinced, take some advice from Scott Pape, the Barefoot Investor – according to Scott, there’s only one dead-set giveaway that tells him whether a young person is going to be financially successful. It has nothing to do with their current income, or their education. It’s whether they’ve made a habit of saving money…..’It’s a trait that’s shared by every single wealthy person he knows.
So kids, on that note, set aside a 30 minute date with your finances each week to ensure you’re spending less than you earn and saving money for future financial freedommm….