I can't remember a time when money, finance, budgeting and expenditure was not a focus for me. From the moment my father passed away after his fight with cancer my mother struggled to provide for the two of us and, because we did everything together, I was involved. I was eleven, and it began a solid financial grounding.
It wasn't until a few years later I realised my mother had insulated me from the worst of it, the terrible decisions she'd had to make to keep our heads above water financially, however by the time I was fourteen I knew because I confronted her and asked to be involved and made her promise we worked together towards a better life. Fortunately, she agreed and the lessons I learned deepened and not just about balancing the books and financial matters. I learned restraint, the ability to weigh up what was a necessary and what was not, to have discipline, how to save and when and on what to spend. work ethic and more.
I took this image
As I moved into adulthood and away from home those lessons came with and I still use some of the very basic methods my mother taught me.
Things are better financially now, years later, through a combination of hard work, diligence, consistency and many good decisions. It's not all worked out exactly to plan though, however applying those lessons has meant greater results each time. and something I have never ceased to do is track income and expenditure; that single act is most responsible for the position I am in currently.
I used pen and paper initially and, I'll be honest, I still do. The difference is I have someone who is far more computer-literate than I am, I really hate computers, who creates spreadsheets from my scribbles representing the data and information in an easier format.
Having an understanding of expenditure worked well for my mother and I in the past and now, even though income is greater and more stable, it's still important.
It's a visual reminder of what costs are on the horizon allowing me to plan for them. I work a year in advance but have expenditure broken down from annual to monthly and weekly. If asked what, on average, I spend on grocery shopping a week I could answer the question within a few dollars of accuracy. Everything is mapped out too, from utilities, household maintenance, medical, insurances, vehicles, groceries, entertainment, emergencies, saving, holidays, technology and so on - I have an envelope that says mobile phone for instance. In it I put $5 a week knowing that at some stage in the future I'll need a new one and the money will be there.
It took time to build a buffer however having a twelve month reserve brings comfort.
Each month it extends a little further and I get a little more in front. Some of the funds are in cash, I don't like banks, but some is in the bank which is where direct debits come from. Most of the cash pays for the long-term things like vehicle costs: fuel service and tyres, entertainment, groceries, dinners, movies and things like that. I prefer having cash on hand also; I know it's something economies around the world are fazing out but I like it and will continue to use it until I can't.
I look at my budget spreadsheet every quarter and make adjustments as costs rise or change and I did just that a few days ago. Unfortunately I had to amend quite a few things upwards as the cost of living increases and I made a few minor adjustments to areas in which I could trim a little.
Straightening out that spreadsheet is so important to my daily life, the present and future.
Getting it right brings comfort and when it goes wrong, as it does sometimes, it brings the opportunity to make changes and improve to avoid those errors in the future. There's many different ways people track their income and expenditure and that's ok, whatever works; the most important thing is that it's actually done because, as I learned from a young age, it brings confidence reduces stress and worry and helps people move forward in better ways.
Becca 馃挆