Tracking How We Leak Money

Many of us spend by habits, not choice. When we choose to make our spending intentional, we are empowering ourselves to make better financial decisions and this will help us achieve our financial and life goals.

 Track your last 3 to 6 months worth of spending. Working with individuals and couples, a common theme I hear is, “I/we can never save!” My first question to them is, “Do you use a debit/credit card every time you make a purchase or do you take money out of your bank and track you purchases?”

I challenge my clients to do the following:

Print out the last 3 months of bank statements (6 months is better if you can stomach the results) or request them from your bank if you don’t have a printer.

Once you have your statements do the following:

• Circle all deposits: paychecks, tax refunds, etc. with a green pen

• Circle all withdrawals with a red pen

• After reviewing your bank statements, what did you notice?

• How many more withdrawals do you see than deposits?

• What are your largest withdrawals after rent/mortgage and car payments?

• Do you see patterns with your spending?

Do you see a pattern of EVERYDAY making a purchase at a coffee shop or a store?     

Now you are aware of your spending and where you can make adjustments.

I am not talking about depriving yourself, I am asking you to be aware of your money choices today, so you can achieve your financial and life goals tomorrow.

I have seen families involving their children when setting goals for the purchase of a home. Sharing with children (at a high level) why they are spending less so they can save more money is a great way to teach children about saving and goal setting.

Teaching these skills is a lifelong gift that will serve your children well. What can you do today so you can stop leaking money so you can achieve your financial and life goals tomorrow? 

If you are ready to make changes with your money patterns, schedule a complimentary discover session.