Right from the start I want to make something clear. I am not an expert in personal finance. I am however, fed up with having more month than money. I intend to change that. I have decided to learn about personal financial planning and I’ll be sharing the things that work for me and probably some of things that don’t. I’m not making any promises about being a zillionaire in three weeks and I definitely don’t think I have set myself an easy task. But with hard work and constant learning I will improve my financial position over the coming months.
So that’s probably the first step on this journey- the desire to change. Of course most people will have this desire and few will actually do anything about it. I am one of the few (I just decided that –see, I’m changing already). OK, but changing from what? Where am I now? How much money do I have coming in and how much am I paying out?
I have gone over my bank statements for the last three months. I have very carefully noted all the outgoing payments. Some of these I can’t change at this point. The bank tends to get annoyed when I stop paying the mortgage. But some of the payments stand out. Do I really need to spend so much at the cafe? I work from home mostly. Two cups of coffee at the cafe will buy a pack of coffee at the supermarket and I can use the plunger here. I’m not going to give up the cafe altogether but if I had been going twice a week instead of five times for the last three months I could have saved myself a hundred bucks.
So that’s my first improvement. In three months time I’ll be $100 richer. Not much, but it’s a start.