Living on Less–Tools to help you spend less so that you can save more, give more and live more.
It’s the beginning of the last quarter of the year which is a great time to review your spending and renew your financial goals for the year (or make a few if you haven’t yet!). You know it’s a good idea to have periodic physical checkups, but it’s also a great idea to do a money check up to see if your financial life is healthy.
Here’s your prescription for a Money Checkup–doctor’s orders!
Review Your Spending
Start with a manageable time frame such as one to two months. Look at your bank statement(s), checkbook and receipts and write down the categories and amounts of your spending. If you would like a framework, you can print the FREE Budget Worksheet here and use it to create your spending categories.
If you have not kept your receipts, try to re-create your spending as accurately as possible. Do you eat out for lunch weekly? Buy coffee in the morning? Spend money on tolls on your drive to work? Don’t forget entertainment (eating out, shopping), books, clothing, etc.
List everything that you can remember, then total your spending in each area. This gives you a good picture of where your money has been going.
Check Your Savings
Spending is just one part of the money checkup. Now that you have an idea of your spending habits, it’s time to check your savings. Gather statements for all savings and retirement accounts and record the amount you have in each. Add any cash amounts you have at home, emergency fund money and money in your Freedom Account (read more here).
Create Goals
Equipped with the information you have gathered, you have a pretty good idea of the health of your finances. You can now make a plan for how you want things to gofrom this point forward. Obviously, if you are married, you want to do this with your spouse.
Make a list of some short term goals (for the next month), some mid-range goals (for the last quarter of the year) and some long range goals (a 1-3 year plan is a great idea). Write your goals down and make sure that they are specific and a little bit of a stretch for you, but not unreasonable.
For example (not our actual goals):
Short Term Goals
Save $200 by November 1st.
Change thermostat a couple of degrees to save on power bill.
Check cell phone plan for lower rates.
Mid Term Goals
Save $500 for Christmas.
Pay $100 a month extra on credit card debt.
Cut grocery spending by $100 a month.
Long Range Goals
Pay off all credit cards.
Save $5,000 into a retirement account.
Pay for vacation to the Bahamas.
If your checkup revealed some “sickness” in your finances, don’t worry. You can take steps today to make them healthier and on the road to full recovery!
Share some of your goals in the comments so we can encourage each other!
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photo credits: scottchan and Vichaya Kiatying-Angsulee— FreeDigitalPhotos.net
Oh yes, I needed this today! I’ve recently returned from a short trip to London and I just continued the “holiday attitude” (grabbing snacks and coffee while doing errands, overspending on refreshments etc.)
It’s time to get back on the track!
BTW: you’ve inspired me to start a blog, too 🙂
Most money-saving/ frugal living blogs I found were focused on/ written by Americans. While I love(d) all the information I found and was able to make use of some of it, our system is just entirely different (we don’t really do checks, couponing isn’t a thing, we’re not that much of a “credit card nation”, we don’t have bulk bins and so on). I was missing one for Germans – people that speak little to no English mainly – and thought, hey, why not.
There’s not much content on it yet, since I find it hard to write posts in addition to my 9to5-job but I’m getting there 🙂
I hope my fellow Germans will like it 🙂 Thank you so much for providing constant inspiration (not in the “I’m gonna copy all your posts”-way 😉
Kimberlee – I had just finished looking at my bank statement for September and figuring how much we spent on gas and eating out when I read your post from today. Unfortunately, our gas expenses went up significantly and we spent too much on eating out (although it could have been worse). My daughter and her children have recently moved back to the area and we are doing more driving – and after watching the children I’m often too pooped to cook – lol. I need to plan better for October. I need some quick and easy suppers, I guess. Thanks so much for your blog. I enjoy it a lot and (like today) it is often right on target with what I’m thinking or doing.
Hi Rhonda! Sorry you had a “spendy” month, but good for you for taking control for October. You can check out my Recipe Page here for some easy and yummy dishes and my my Easy Meal Planning Page for more ideas to help you get dinner on the table! The 8 dinners in 1 Hour plan might be just the thing for you. 🙂
I use the envelope system but I blow it every pay period but I never give up. By the end of they year I’m going to be sticking to it like glue.
I just discovered your page and have really been enjoying it.
Good for you Wynona! That’s my motto–just keep moving! 🙂
I love reading your short term, mid and long term goals. So practical and specific. I especially like the short term ones, it makes it seem so much more doable and you can see those results sooner.
I guess goals for me would be:
1.Use cash/envelope system for groceries, toiletries and eating out. I did this last grocery trip, and thought it might help motivate me and let me know where I’m at each time I go shopping, just look at what’s left in the envelope.
2. Continue earning more swagbucks (at least 15 a day), I’ve been trying to use these towards amazon giftcards for grocery items that go on sale, like toilet paper and coconut oil.
Hi Katy! These were actually just examples, but when I looked back at them, the short term ones fit. Haha! (We don’t have any credit cards.) I should have made that more clear.
I like your goals, especially the cash for groceries. I have been doing that consistently for about a year now and it really helps me to stick to our budget. Thanks for taking the time to comment. 🙂
So you’re not really planning a trip to the Bahamas?? Bummer! I was excited for you!
Nope, but now that I think about it, it sounds fun. 🙂