At the first of our 'Serenity On Tour' seminars (which span the UK covering Cornwall, London, Lincoln and North Wales), one of the presenters asked the questions ...
1. How much money do you have on you right now?
2. How much money did you spend last month?
3. How much money will you spend next month?
Not many delegates knew the answer to the first question, less to the second, and less again to the third. The point behind the exercise, was that if we do not know what we are going to spend next month, then how on earth will we know what we will spend in retirement?
Bringing it back into the here and now, and I am sure you can recall that feeling as you check the bank account - 'whoa, where did that all go?'. Generally, that comes about because we are not aware of what we are spending, it is not monitored consciously, and as a result, day after day, month after month, year after year, spending spirals out of control.
The impact of all this - the things which we really need to spend money on, which bring about major impacts to life, we can no longer afford, or have to make a trade off. Instead of being able to do what we WANT, we have to do what we are ABLE to - and that in itself brings about a very different emotion indeed.
At Serenity, we have a number of ways from helping our clients with budgeting, allocation of money, and prioritising their saving and expenditure. From our three account system, through to a simple spreadsheet, it doesn't have to be mega complicated to get you back on track.
What ever you do, what ever you spend, do and spend it on purpose.
Tracking your money is the best way to ensure you're keeping up with your expenses, and not overspending in the wrong places.