Your Finance Travel Buddy presents One Simple Step

Happy Sunday fellow Financial Freedom Seeker

Mindset Moment

One Simple Step

We’re in a new month! 

For finance professionals the start of a new month is the opportune time to reflect on the previous month, and most will complete month-end procedures whereby we calculate actual revenue, costs and profits in the prior month. This is something individuals can apply to your personal finances.  

Your One Simple Step this week is…

Review how much you earnt and spent last month

What does this mean?

Review all your bank accounts and credit cards for how much money you have made and how much money you have spent. If your main source of income is through employment and is regular each month, then thar’s pretty easy to review. With the spending it is important to understand what you have spent your money on. This is usually a mixture of fixed costs like rent/mortgage, utilities, property taxes, internet / mobile contracts and discretionary spend like socialising with friends, dates with a partner etc.

Why is this important?

According to a survey conducted by Forbes in 2024, 78% of Americans live pay cheque to pay cheque. 

According to The Independent 26% of people earning £100,000 and more live pay cheque to pay cheque in the UK. 

Even if you earn a lot of money, you can spend so much that you aren’t able to save anything. This is why it is important to review your spending so you can understand: 

1. How much your fixed costs like mortgage / rent, utilities, property taxes, internet / mobile contracts etc are as a proportion of your income 

2. Where you can optimise your spending, so you are able to save more money

How do I implement this?

1. Collate and review your bank / credit card statements

Your bank and credit card statements will have all the necessary information on your earnings and expenses. You can review this to see where and how much you have spent. 

💡Top tip: it can be useful to categorise the different expenses you have so you are better able to see which costs are fixes and which ones you can optimise. See the referral section later in this email to get a free template

2. Create and manage your budget

As well as step 1, when reviewing your income and expenses from your bank statements it can be useful to put them in a budgeting template as this enables you to track them month on month more easily.

📩 Reply to this email with what your financial goal and larger why are - we would love to know so we can work to help you

Found this email thought provoking and helpful? 🤔 Refer just three friend/colleague/family member to the newsletter and we will send you a free cost categoriser where you can input all your expenses and categorise them to help you determine where you can save costs

Have a fabulous week ahead!

Until next week

Pernia | Your Finance Travel Buddy