Found Money

Do you find yourself with too much month at the end of your money? Would you like to “Pay Yourself First” but haven’t figured how? Would you like to S-T-R-E-T-C-H your paycheck or income? If you answered “Yes” to any of these questions, the good news is that it will only take you half an hour to start feeling financially fit. Isn’t that time worth it to get out of debt, build your savings or save more for your retirement? Fulfilling many of your financial goals is within your reach – or at least your personal spending. You can control every penny that you spend; while it is much more difficult to increase your income. There is money to be found in every spending plan, which is the foundation of our financial health. To uncover that found money, complete the following exercises – especially the first! It should take no more than half an hour. You will find that once you accomplish these exercises, you will breathe a sigh of relief and have the energy to tackle the rest of your finances! 

Jot Down Every Dollar Detail

On a sheet of paper, write down everything you spend for the month. The goal is to come up with one monthly number that reflects all your spending (i.e. to walk out your door, it costs $3,000 per month). While this sounds simple, there are two areas that most people forget: annual expenses and small purchases. Annual expenses that are usually forgotten include: vacation, insurance, holiday gifts, professional services, school, medical expenses, clothing purchases, taxes and charitable contributions.

Then take this number and divide it by 12 to figure out how much this adds to your monthly expenses. You might spend $1,000 a year on clothing for your family; therefore, add $83.33 to your monthly expenses. Now tackle the small purchases, such as all food and meals. Perhaps you buy a $3 coffee daily. That equals $60 per month ($3 X 5 times/week X 4 weeks). Don’t forget about clothing, taxis/transportation, gifts, personal beauty, books, CDs and magazines/newspapers. Once you have that monthly number, see how it compares to your income.