In an earlier post, I spoke about using Google Maps as an analogy. If you’re not sure where you’re going, the first place you actually need to look at is where you are right now. With your spending, you need to know where your money is going. First, look at your current expenses. That means going through your bank account statements to see what your spending on.
The next step is to identify what you can change. We’ll talk about that in another post. It will vary depending on your vision for your finances which we’ve already discussed.
I’ve put together a comprehensive list of all different types of expenses. This will take you through all the possible expenses you might have in detail. You might be
looking through your bank accounts and immediately identify the big, more regular items. The list will help you consider other things that don’t come to mind that easily, for example, items that need replacing over time or the big life events (getting married, buying a house,etc.)
By going through that process, you’ll have a clear picture of what you’re currently spending your money on. Once you’ve done that, you can start changing that to get to your goals faster.
What expenses have you forgotten about? Let me know in the comments