Ever had that morning after a night out where you dread checking your bank account ?
Yes, read on;
Meh to No.... lol don't lie to yourself, read on;
Solid no... still read on (a lil more knowledge never hurt no one)
Yay!!!! January is finally over, seems like it drags on forever. Before you rush on to February and start that financial drain formally known as valentines day, lets talk about a needed rule.
A monthly financial review, as the name entails, means to go over what you spent over the month. With this you get to know your standing and work to stabilize and hopefully improve your financial standing.
How?
Luckily this is extremely easy if you only use your debit or credit cards because you just have to look at your bank statement and see the bulk of it.
However, cards don't get to the nitty gritty, so for more details or for those who don't use cards as much or those who use cash and watch it fizzle out of their hands, this may be a tad harder.
Here are the basics:
--> ALWAYS TAKE THE RECEIPT! - I am a strong believer in always always taking my receipt. 2 key reasons:
i) You may need it as a point of reference
ii) You can properly review your expenses
Yes I spent £13 in the cinema, that "£8 snack deal" and the "£1 - 3d glasses (that i have a drawer full of)"
--> Invest in a financial planner - Microsoft Excel, a physical financial journal or whatever your method is, monitor it.
(Bonus if you are subscribed to us, keep an eye out for our monthly personal finance pack , this will include everything to become a #budgetier and get that financial high
Coming soon...)
Why should you do it?
1. You get to reflect on the past:
Sometimes I feel like I had this months spending on lock!, my savings are looking healthy and my investments still have a healthy pulse.
Then I do the monthly review,
How on earth did I spend that much on travel?
There has to be a mistake
I spent WHAT on krispy kreme this month.
Making all what whozzit, whatzzit and howzit faces
lets be honest you got to reflect, and trim accordingly, next time I wont buy a box of 12 doughnuts because they had a deal
2. You get to understand your present:
I get it, you needed those 5 jägerbombs or it was your turn to buy amenities at home.
Here you'll avoid the “flying blind” spell, before you "fly" into the broke life. It all balls down to budgeting
3. You can predict the future:
Not saying that reviewing your past will give you super powers, but it will give you a hint of foresight.
Since every 3 weeks my money runs low and I'm literally gasping for air until pay-day.
I can plan and avoid the-week-before-payday struggle
4. You can now make more informed decisions:
Knowing where you stand is the perfect platform to make informed decisions.
Is that internet bill to high? - switch to watching movies online, no cinema for a month
Is that bubble tea or coffee place putting you in the £5 debt? - Find a good brand and switch to home made
#Bonus: You can get a jump on tax planning - if you happen to live in a country where you have to sort out your taxes separately
21 days to make a habit, 90 days to make a lifestyle... Before you know it you'll be a budget ninja #budgetier
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