If you’ve ever looked at your bank account and had absolutely no idea where your money has gone, you’re not alone.
Here are three easy steps to help you regain control of your spending.
Step 1: Investigate
It would be best if you worked out how much you’re spending each month and on what. Consider using an app, a Budget planner or a paper to give this step some structure.
Pick a month and make a note of everything you spend – think household expenses example rent, bills and groceries and lifestyle expenses example gym membership, going out and clothes. Include any money you set aside for savings.
Step 2: Categorise spending
Having found out where your money goes, you can now categorise your spending. This helps you identify which of your spending habits, entirely change or ditch altogether.
Some ideas for categorisation:
- Food
- Entertainment/ going out
- Fitness
- Bills
- Childcare
- Travel
- Transport.
Total how much you’re spending in each category. Most people find this eye-opening and can quickly see where they can cut back. This exercise will also help you to prioritise your spending.
Step 3: Know what and when
It’s essential to know exactly what’s happening with your money so you can make the best financial decisions for you. We can help.
And then use Cash flow view on your bank to get a better picture of your income, spending and saving habits across your bank account And see how you’re trending month-to-month.
