Where did it all go?
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If you’ve took part on Monday’s challenge – Where Does It All Go? to track everything you’ve spent your money on, by now you will have started to collect some useful information. If you didn’t it’s not too late to take part as tracking your expenditure will take you a long way towards getting your spending under control.
If you’re using the envelope system I’m sure you will be seeing that one envelope is getting fatter than the others.
If you’re using iXpensiT for the iPhone, then you can run a report and see where it’s all gone.
Any surprises?
Before we continue to look at your spend in more detail, pop over to your online banking account where you pay your bills from and note down any transactions incurred over the last week and enter them into your spending records. (If you’re using the envelope system, just write the transaction down on a bit of paper and pop it in the appropriate envelope) .
Now run the report or total up the receipts in each envelope.
Are their any surprises?
Are there any subscriptions you’re paying for which you don’t use? Are there any bills you’re paying which you don’t recognise?
[Note: I know someone who once did this exercise and found they were paying hire charges for a washing machine in a house they hadn't lived in for 2 years!]
Are you spending money on the things you love?
How much of your spend is going on what I would call your fixed costs; such as your rent, utilities, telephone/internet and TV/Cable/Satelite.
Can you do anything to reduce these costs (see my post on how I earned £19.20 a minute yesterday)?
Are there any opportunities here to save money?
(Tomorrow we’ll be republishing our popular guide on how to save £50/$50 which may give you some more ideas)
“but Matthew, the car broke down, we had a leak in the bathroom…”
Sure, stuff happens. That’s life. But it’s how you deal these little emergencies is what counts.
On Monday we’ll talk about creating an emergency fund before we go on to to talk about savings.
So what have you learnt about your money this week and, more importantly, what are you going to do about it?
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My name is Matthew Needham and I'm a full time interim manager and consultant. I work with businesses large and small to help them grow their businesses, save money or improve their business processes.
I'm an entrepreneur, accountant and blogger. You can read more about me, or The Big Red Tomato Company on the 
Good advice, Matthew.
It’s taken me a year to work out what was wrong with my electricity bill. Since switching supplier (to save money), the new one has been charging me twice for the electricity we’ve been using. Result: credit of £200 on its way back to me.
Also, because they handled my initial query badly – outside of their own customer charter – I’m getting a £20 goodwill payment.
Out to dinner tonight to enjoy a little bit of this benefit!
Morale of this story: check your utility bills carefully
Glyn
.-= Glyn Lumley´s last blog ..Is Yours a Forgiving Workplace? =-.
Matthew Needham Reply:
March 19th, 2010 at 8:27 am
Thanks for your comment Glyn. It’s nice to have the ‘other’ Lumley visit.
Congratulations on the saving! You need to modify your moral; check ALL bills carefully, even shops.
I was once in a shop buying some clothes in a sale and just I was paying I realised I’d been overcharged by £20. So easy to miss.
Have a great night out!
Ben Reply:
March 20th, 2010 at 10:14 pm
Don’t go spending all my inheritance!!!!
I’m getting much better at tracking what’s going on with bills these days. As well as being more positive in stepping forward and voicing my concerns.
.-= Ben´s last blog ..Looking back over the last 60 days =-.
“but Matthew, the car broke down, we had a leak in the bathroom…”
Those always tend to happen as soon as you have a decent amount saved up, then BOOM its gone. That why you gotta keep making money.
.-= Alex´s last blog ..The Virtue of Obsession =-.
Matthew Needham Reply:
March 19th, 2010 at 8:55 am
Ah Alex. It needn’t be like this, check back on monday! Thanks very much for your comment!
Matthew,
It’s hard to rope your finances but there’s always an underlying cause for what you’re wasting your money on.
For instance, I take a walk to WaWa every day and buy a stupid Snapple tea (diet). There’s no need for that. Once in a while, sure, but 3-4 days in a row? No. My underlying cause is unhappiness with my job and that is one moment I look forward to in the day: walking over to get a drink.
I realize people have much bigger problems with money so I”m in a good spot in my life, could be better, but I won’t complain. I’ll take a look at my account today
.-= Moon Hussain´s last blog ..Clash Of The Titans: Pros & Cons of Various Types Of Passive Income Streams =-.
Matthew Needham Reply:
March 20th, 2010 at 12:42 pm
Moon, thanks for your comment.
I thought WaWa was a place until I Googled it and realised it was a shop! Sometimes spending money is an escape from unhappiness. As you’ve identified the happiness is in getting out to get the drink. The Snapple tea is the excuse you need. Maybe if you stopped buying your Snapple tea you would be forced to look for an alternative escape. It might be the motivation you need to build your business and leave your business.
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