FINANCE 4 U - STEP 2


Okay, are you ready? 😊


Last week the task was for you to source an exercise book or notebook so that we can get started on your money journey of Owning your numbers, Controlling your numbers and Building your numbers.


We are going to use some good old fashion methods. If you have already been on your money journey, this series can help remind you of some expenses that may have crept up, or help you tweak your numbers. I will also be working alongside you.


As we move along the SERIES I will explain and cover lots more about building wealth, but for now, we are working on Owning your numbers, slow and steady whilst you are busy living. 😊


Excited?


I AM ...



2. WHAT do you spend your $$s on?


Do you sometimes bury your head in the sand when it comes to all the expenses that just keep flowing out like this little guy here? You are not alone AND we can tackle this slowly.


As they say, to eat an elephant you need to take bite-size pieces (well you wouldn't want to eat one of these cute guys but you get the drift!).





So this week's task is to start writing up your expenses. We will be keeping expenses separated by their frequency. On the first page, write down Weekly Expenses. This is where you will write down costs that you usually pay on a weekly basis.

  • Groceries

  • Petrol

  • Eating out

  • Going out








The next page can by Fortnightly or Monthly expenses. On this page, you will write down the expenses that you usually pay fortnightly or monthly.

  • Rent or Home Loan

  • Health Insurance

  • Personal loans

  • Mobile Phone

  • Internet

  • Subscriptions







Following on the next page is Quarterly

  • Electricity

  • Water Rates

  • Gas

  • Council Rates/ Strata

  • Kids sports













And finally Yearly Expenses

  • Car Insurance, maintenance, registration

  • Home Insurance

  • School fees

If you know when the expense is due, capture that too.











How to find all your expenses?


Groceries and going out can be big dollars, so keep some dockets OR if you pay by card, then scroll through your bank app or bank statement to find them. Add up a month or two to get an estimated average.


Another way is to get some of the bills you have paid in the past and review them, OR if you automatically pay bills then check how much you pay from your bank account. All these numbers are to go into your Expense pages so we can work on them in the upcoming steps. Leave plenty of space on these pages, we will be coming back to them in later steps.



What about ad-hoc expenses throughout the year you ask!? 😊


These could be gifts, clothes, travel or petcare for example. I have put down some rough estimates for our family. Each month I transfer a portion to our Yearly Expense account so that when we do go for that shopping splurge when winter comes along, or we need Christmas / Birthday presents, I have some money already stashed for them. For the moment, lets put these types of expenses on a separate page, following Yearly Expenses and then we can calculate some overall expense amounts when we get to that. Just think about what you usually spend and on who to give us a start.

  • Clothing - how many people and different seasons/times of the year

  • Gifts - Christmas, birthdays. spend limits per gift and to who

  • Petcare

  • Travel


Some examples below of my personal process to work out my Adhoc/Misc expenses.




… Just get it down in black and white.


During the week, keep this book handy so when you think of something, you can write it on the designated page. Its a working book and will be tweaked as we go.


As we are taking this slow, you don't have to go any further than this task. Don't even tally them up yet! 😜


You can refer back to some of my earlier posts regarding my budget and how I write them down for some more examples.


Enjoy the process and don't get too bogged down in trying to work out 'how' you pay for these expenses. Just be truthful and if some of the expenses are ad-hoc, then ballpark the amount. It's better to get something down than nothing at all.


Have fun and post some of your pages on Facebook or Instagram, or post where you are when you are working on this task. If you make it a little light-hearted it won't feel so overwhelming. See you next week.


#finance4u #genxfinance #chooseFI #personalfinance #retirementplanning #financialpeace #financialliteracy #financialfoundations


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