Auditing Your Personal Finances For More Money And Piece Of Mind

auditing
 
Just saying the word “audit” can make people cringe. The idea of the IRS sending agents to try and find any mistake on your tax forms is understandably nerve-wracking. However, an audit is really just a solid, hard look at your finances. And believe it or not, it’s something you should be doing to your household.

Unlike IRS auditing, you’re not looking for any mistakes to penalize and fine. Instead, you’re looking for ways to save money. It’s like taking a look at the big picture of your household’s financial health — but still taking a close-up look at times to know what to keep and what to change.

When it comes to auditing your personal finances, you should start with where you’re losing money.
 
auditing
 

Auditing Starts With Where You Lose Money

Trying to improve your income can only go so far. Sure, the occasional side gig or Etsy sale to earn a few extra bucks is usually worth it, but those are more for special occasions. You need downtime! That’s why it makes sense to look at where your money is going.

For most Americans, some of the biggest ways you lose money are housing (mortgage or rent), food, transportation, healthcare, and entertainment. That’s why you need to look at these household expenses and see where you can stem the flow.

Entertainment is the obvious choice; eating out less often can quickly save you some money. But look at your health care and housing costs. Are you using your health insurance? If you have a regular need for medical care (like with diabetes or bad allergies), you might save money each year by having better insurance. Likewise, an expensive and big house is awesome, but if you’re not using the space, consider downsizing to save hundreds of dollars each month.

The tricky part is the cost of childcare. If you need someone to look after kids when you go to work, you can’t exactly cut these costs. Shopping around for a high quality day care center that won’t break the bank is key.
 

Look Hard At Your Budget

Most people have something they call a “budget,” but it’s not really that. If you can’t clearly state how much you can spend on going out each week, then it’s not a workable budget. That’s why you need to look at it — or in some cases, create one.

Start by collecting all your financial data: bank statements, paystubs, bills, and receipts. Separate your costs into two categories: fixed (meaning you can’t do much to change them) or discretionary (meaning you have control over them, even though it might be hard to change them). Using a worksheet easily found online, create your budget by listing your income and subtracting your expenses.

If you end up with a negative number, you need to make changes today. Look at those discretionary costs and decrease them. Then put those new limits on your phone, on a small piece of paper in your wallet, or somewhere you can easily remind yourself when out shopping.
 

Improving Your Financial Skills

Lastly, you need to make sure you are financially literate. That doesn’t mean being able to read a bank statement. It means knowing how to manage your money for your lifetime. For example, if you have extra money each month, what are you doing with it? Do you know how much you’re paying each month on credit card finance charges? Can you pay off a car loan sooner, or will that incur a fee?

Money is very important to your well-being, both physical and mental. Sure, the best things in life are free — but food, heat, and fuel are not. That’s why you need to look hard at where you’re losing money. Then, take time to create an actual budget, and make reminders so you can stick to it. Then, teach yourself a few financial terms each year. By auditing yourself this way, you can be on-track to getting wealthier each year.

Comments

comments

KTB Editors

Articles, podcast and video from management. We are the whisper in the breeze.

You may also like...

39 Responses

  1. August 24, 2017

    Title

    […]we prefer to honor numerous other online websites around the net, even when they aren’t linked to us, by linking to them. Underneath are some webpages really worth checking out[…]

  2. August 25, 2017

    Title

    […]always a large fan of linking to bloggers that I love but really don’t get a great deal of link love from[…]

  3. August 25, 2017

    Title

    […]just beneath, are many totally not associated web sites to ours, even so, they may be certainly really worth going over[…]

  4. August 28, 2017

    Title

    […]please check out the web sites we stick to, including this a single, because it represents our picks from the web[…]

  5. August 28, 2017

    Title

    […]please check out the sites we follow, including this one, because it represents our picks through the web[…]

  6. September 1, 2017

    Title

    […]we came across a cool web-site that you just may well get pleasure from. Take a look when you want[…]

  7. September 3, 2017

    Title

    […]Here are several of the websites we suggest for our visitors[…]

  8. September 3, 2017

    Title

    […]usually posts some very interesting stuff like this. If you’re new to this site[…]

  9. September 3, 2017

    Title

    […]one of our guests not too long ago encouraged the following website[…]

  10. September 5, 2017

    Title

    […]Here are a few of the web pages we suggest for our visitors[…]

  11. September 6, 2017

    Title

    […]check below, are some completely unrelated web sites to ours, however, they’re most trustworthy sources that we use[…]

  12. September 7, 2017

    Title

    […]that would be the finish of this write-up. Right here you’ll find some web pages that we assume you will enjoy, just click the links over[…]

  13. September 8, 2017

    Title

    […]check beneath, are some entirely unrelated web-sites to ours, on the other hand, they may be most trustworthy sources that we use[…]

  14. September 11, 2017

    Title

    […]the time to study or take a look at the content or web sites we’ve linked to beneath the[…]

  15. September 12, 2017

    Title

    […]always a major fan of linking to bloggers that I enjoy but do not get a lot of link adore from[…]

  16. September 14, 2017

    Title

    […]we came across a cool web-site that you simply may take pleasure in. Take a search should you want[…]

  17. September 16, 2017

    Title

    […]please pay a visit to the web pages we follow, which includes this 1, because it represents our picks through the web[…]

  18. September 18, 2017

    Title

    […]check below, are some totally unrelated internet sites to ours, having said that, they are most trustworthy sources that we use[…]

  19. September 19, 2017

    Title

    […]check below, are some absolutely unrelated internet sites to ours, on the other hand, they’re most trustworthy sources that we use[…]

  20. September 23, 2017

    Title

    […]check below, are some completely unrelated sites to ours, however, they are most trustworthy sources that we use[…]

  21. September 25, 2017

    Title

    […]Here are some of the web pages we suggest for our visitors[…]

  22. September 29, 2017

    Title

    […]the time to study or check out the subject material or web pages we have linked to below the[…]

  23. October 1, 2017

    Title

    […]The facts mentioned within the article are a few of the most effective offered […]

  24. October 1, 2017

    Title

    […]please pay a visit to the websites we stick to, such as this 1, because it represents our picks from the web[…]

  25. October 1, 2017

    Title

    […]Sites of interest we’ve a link to[…]

  26. October 1, 2017

    Title

    […]check beneath, are some entirely unrelated internet sites to ours, on the other hand, they are most trustworthy sources that we use[…]

  27. October 2, 2017

    Title

    […]usually posts some pretty interesting stuff like this. If you are new to this site[…]

  28. October 2, 2017

    Title

    […]just beneath, are a lot of completely not related websites to ours, however, they may be surely worth going over[…]

  29. October 2, 2017

    Title

    […]usually posts some extremely exciting stuff like this. If you are new to this site[…]

  30. October 3, 2017

    Title

    […]one of our visitors recently suggested the following website[…]

  31. October 4, 2017

    Title

    […]we like to honor many other online sites on the net, even when they aren’t linked to us, by linking to them. Below are some webpages really worth checking out[…]

  32. October 7, 2017

    Title

    […]we prefer to honor many other internet sites around the web, even though they aren’t linked to us, by linking to them. Under are some webpages worth checking out[…]

  33. October 7, 2017

    Title

    […]just beneath, are many completely not related websites to ours, however, they’re surely really worth going over[…]

  34. October 13, 2017

    Title

    […]we like to honor many other world-wide-web web pages on the net, even if they aren’t linked to us, by linking to them. Under are some webpages really worth checking out[…]

  35. October 15, 2017

    Title

    […]we came across a cool site that you just could take pleasure in. Take a search should you want[…]

  36. October 16, 2017

    Title

    […]Every the moment inside a while we decide on blogs that we study. Listed below would be the most current websites that we select […]

  37. October 16, 2017

    Title

    […]Here are a number of the sites we suggest for our visitors[…]

  38. October 17, 2017

    Title

    […]Here is a great Blog You may Find Fascinating that we Encourage You[…]

  39. October 19, 2017

    Title

    […]The information talked about within the write-up are a few of the best out there […]

Leave a Reply