I have just been doing my own annual financial review. Now I’m one of these strange people who love numbers and so I do sit down and work through my bank statement looking to see where my money has gone in the past year. This is an amazing way of seeing exactly what I have been spending my money on, whether I kept to my budget and how I can cut costs in some boring areas i.e. the mortgage, so I have more money for exciting things, such as saving for a new kitchen, new shoes, and a relaxing summer holiday.
Hmm, seems this year we have been overspending on food and clothes for both the kids and me. Oops!!
I treat myself by buying lovely clothes for the kids. I don’t feel guilty then as it is spending money for the kids, and they need clothes don’t they?! (Yes, but not as many as I buy).
My husband sees this as women’s logic as I am still spending money. However, he buys things through his business and so tells himself he hasn’t paid for it. However, his business has, so even though it is a tax efficient way of doing it, he has less money to pay himself. So we all have slightly different ways of thinking about spending money that may not always serve our future happiness in the best way. A regular spending review can help to bring you back to reality.
So how has my spending review helped me?
Well, I have set new goals for this year (well 6 months really as I’m going to check how I’m doing then):
- Cut down on our food bills by planning meals for the next few months from all of the food in our very full freezer and stop wasting food that we do buy.
- Only buy clothes for the kids when they actually need them, not when I just see something that’s so cute.
- Cut down on buying “stuff”. You know the stuff that I mean, that you find around your house that has no real purpose or use. Those pretty bits you buy or get for birthdays just to give somebody something, those toys that the kids have nagged out of you at the supermarket that they’ve only played with once, those kitchen gadgets that looked amazing when you bought them, but are now languishing at the back of a drawer.
You may think that I’m being tight, but look at how much you spend on these things every year. I was quite horrified at my figure. Now think about saving this money instead.
£100 pm over 20 years, growing at 5% every year could give you over £40,000.
So, if you too want to review your spending, then contact us now for your free Financial Breakthrough Session.
Your future happiness is depending on it.
