At the start of each month, I have a little ritual called "doing the figures" which consists of going over my bank statement and transferring each expense in a table on my computer into the appropriate categories.
I have been doing it for about a year and over that time, I have actually come to enjoy the process. I started doing it at a time when I wasn't working much and we had a lot of expenses. Not knowing where we sat each month and if we were living within our means was a source of stress.
Doing the figures doesn't quite act like a budget since it happens after the fact but it has brought a lot of clarity to our spending habits and helped maintain a good balance, even when our capacity to spend is limited. Since I can not imagine running a credit card bill that I can't pay back, to me, this is absolutely crucial if we are to maintain our current lifestyle.
It helps that neither of us are big spenders but tallying everything has highlighted where some money was trickling out and could be saved. Not every month sees us in the comfortable green but at least, I know that the expensive months, which are unavoidable, are balanced out by the leaner ones. It also gives me a rough feel for what is wise to spend, like a coffee here and there won't hurt, and what isn't, rather than spending blindly and hoping for the best... only to then live with the guilt of the purchase.
I also like to remember each purchase which acts a little like a diary. Some months have been more interesting than others with trips to Sydney or a fun dinner out. Some months are all about the house with several trips to Bunnings, our local hardware store.
At a time when I am not earning anything, it restores peace of mind to simply know and be ok with what has happened. Of course, we could always spend less. We could always skip that coffee or that pastry but that wouldn't be living, it would take all the fun away. So until I start adding coins to the coffers, my job is to make what we do have stretch as far as it can. And I'm actually pretty good at it.
I have been doing it for about a year and over that time, I have actually come to enjoy the process. I started doing it at a time when I wasn't working much and we had a lot of expenses. Not knowing where we sat each month and if we were living within our means was a source of stress.
Doing the figures doesn't quite act like a budget since it happens after the fact but it has brought a lot of clarity to our spending habits and helped maintain a good balance, even when our capacity to spend is limited. Since I can not imagine running a credit card bill that I can't pay back, to me, this is absolutely crucial if we are to maintain our current lifestyle.
It helps that neither of us are big spenders but tallying everything has highlighted where some money was trickling out and could be saved. Not every month sees us in the comfortable green but at least, I know that the expensive months, which are unavoidable, are balanced out by the leaner ones. It also gives me a rough feel for what is wise to spend, like a coffee here and there won't hurt, and what isn't, rather than spending blindly and hoping for the best... only to then live with the guilt of the purchase.
I also like to remember each purchase which acts a little like a diary. Some months have been more interesting than others with trips to Sydney or a fun dinner out. Some months are all about the house with several trips to Bunnings, our local hardware store.
At a time when I am not earning anything, it restores peace of mind to simply know and be ok with what has happened. Of course, we could always spend less. We could always skip that coffee or that pastry but that wouldn't be living, it would take all the fun away. So until I start adding coins to the coffers, my job is to make what we do have stretch as far as it can. And I'm actually pretty good at it.
It's priceless (pun intended or not) to be at peace with one's spending and invaluable (ditto) with that of one's spouse.
ReplyDeleteI certainly understand the serenity you feel when your figures fit fine just as I am also very familiar with the life transition from money-earner to money-saver.
In the land of coupons-a-plenty, there is no limit to what can be saved and just this morning, in keeping with family tradition, I spotted a crumpled $5 bill on a parking lot.
So from one literary minded family CEO to another, Happy Balancing!
Oops, CFO but hey, CEO and COO sound good too.
ReplyDelete