I was working through all my expenses the other day. I had been waiting for a few yearly expenses to be processed. I use a simple spreadsheet to tackle expenses and the main objective was to understand my monthly expenditure.
I learnt three valuable things in the process.
First, make sure you put in all your expenses in one place.
Second, data throws away misconceptions. Over the last few months, my monthly accounts closure has been a rushed task on account to an overall lack of time. I’ve always had a mental approximation on how much I spend. The data indicated I was fairly off the mark – I was much closer to hitting my budget limits than I imagined!
Third, reality spurs action. The realization that I’m not as austere as I’d like has naturally resulted in a few unnecessary expenses being cut here and there. I realize expenses are one of those things which are worth revisiting from time to time. It helps to cut away the fat.
A very valuable exercise overall. I will look into my accounts properly once again at the end of the year. I hope you do too.