The next steps on my journey (see the plan here if you're interested) are below.
Start noticing where I'm spending my money
The questions I want to ask are:
- Who do I spend with?
- Do I agree with their supply chains, their culture, the way they do things?
I've just added these questions to my weekly reflection questions.
Another part of this is making a habit of questioning my purchases.
I've gone through my fixed expenditure in past posts but I haven't talked about variable expenditure.
I've used YNAB in the past but I've been manually keying and it was taking more time than it added value. I also refused to use adjustment transactions so I would go to extreme (and unnecessary) lengths to figure out discrepancies and get accounts to reconcile.
So I'm doing two things today:
1. I'm splitting my business and personal finances. This should have happened earlier.
2. I'm splitting my personal fixed costs and my personal variable costs. I'm doing this by using separate accounts.
What this means is that I can review one account to see my variable discretionary spending.
Set up a system to help me notice where I'm spending my money
The other thing I'm doing is set up Pocketbook. I'll categorise the June expenses to date (and see how long it takes) and see what my backwards looking discretionary spending looks like.
90 minutes later
I did not expect that to take 90 minutes.
I went through 30 days of expenses, creating custom categories as I went.
I made a bonus discovery: I accidentally doubled up on a payment and I'm $800 richer than I thought I was. YAY!
If you're interested, here are the categories I've set up (the !s are to keep them at the top of the list):
- !Business - Books
- !Business - Courses
- !Business - Equipment
- !Business - Events
- !Business - Insurance
- !Business - Payment Testing
- !Business - Software
- !Business - Stationery & Sundries
- !Business - Subbies
- !Business - Subscriptions
- !Business - Templates & Guides
- !Income - Coaching
- !Income - Employment
- !Income - Services
- !Personal - Adventure
- !Personal - Appliances
- !Personal - Art
- !Personal - Clothes
- !Personal - Courses
- !Personal - Dance Membership
- !Personal - Eating Out
- !Personal - Groceries
- !Personal - Health
- !Personal - Loans
- !Personal - Savings
- !Personal - Snacks
- !Personal - Subscriptions
- !Personal - Supplements
- !Personal - Tax
- !Personal - Transport
- !Personal - Utilities
If 30 days of categorisation takes 90 minutes, I would hope that I can keep a weekly run through at around 10 minutes.
I'll let you know when it happens on Monday.
A reflection on historical data
I've had a flick through the last 30 days.
Without historical trends to look at (I cannot express how tempting it is to go back and categorise a few more months), the biggest question I have for myself is:
Is it in line with where I want to go to be spending $500 (AUD) on eating out in one month?