Monday, May 21, 2012

June 2012 Money Management Challenge

One of the greatest satisfactions in life is feeling the relief of paying off a debt.  We all know that debt causes stress, and don't we already have enough of that in our life?

Financial freedom is not necessarily having the finances to purchase whatever you want.  Financial freedom is having the knowledge and the wisdom to create a plan that allows you to live within your means.

Each month's challenges will help us attain our
Financial Freedom in the
Money Matters Monday

  • Throughout this series we will look into the management of our expenses.  We need to know where and when we are spending our money.

  • We will then learn to categorize our spending.

  • Then we will talk long term about some financial planning choices and where to start searching out the questions and answers.

This month's Money Matters Monday challenge is to collect receipts.  That's right, it's as simple as collecting receipts for everything you purchase throughout the month of June.

Receipt Collecting

  • To get you started, you'll want a letter-sized manilla envelope to house your receipts for the month or a smaller envelope for each week.  Actually carrying around a smaller envelope might be a little easier if you're carrying a purse.
  • Next, ask a good friend, family member (or someone who is brave enough to be honest) to help you with this month's task.  Have this person write down how much they think you spend throughout a month and seal it in an envelope.  They can break down their estimate if you'd like; for example, daily coffee, magazines, groceries, entertainment, drinks, etc.  This amount does not include fixed monthly payments such as rent/mortgage/bills.
  • This will only be what you purchase with cash, debit, check, or credit card.

This is not a behavior modification exercise.  This is for us to go through the month, as we always do, so that we can actually see where our money went.  So, in order for this to work, please go about your activities as you always do but be sure to collect a receipt.

Each Monday, we will check in and get a sense of how we're doing.  We'll talk about how we're feeling, are we changing our behavior knowing that we will have to collect a receipt, etc.  However, we will save the receipt analysis for the end of the month.

No peeking until the end of the month!

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