Memo 5: Keeping a log of expenses

One key technique used in financial coaching is to help clients establish a log of expenses and budget. This is easy to talk about and hard to do. Most people will be able to quickly develop the basics expenses: house/rent payments, car payments and utilities, maybe even food. The more obscure expenses such as charitable gifts, lunch monies, clothing, haircuts, education and insurance for car and home are not often registered on a budget. In addition, there are periodic expenses that are not typical to a month, however part of annual cost of living e.g., DMV, tax preparation fees, medical, dental, etc. As a way to begin to track monthly costs, I have suggested keeping a daily log of where you money goes.  It is in principal simple, however, as a day goes on, we may forget and then we lose track of the little incidentals. At the end of the day it usually not the big stuff that eats up our monthly income, it is the nickel and dimes which in 2013 is equivalent to the ten and twenty dollars that causes financial struggles.  What did you spend today? Now write it down and track it for the month. 

Memo 4: Stay the course

On life’s journey, including financial well being, one must stay the course. It is important to acknowledge incremental successes. One recent one shared by my client was that they are eating home more often.  While other parts of their expense reduction have been more difficult to maintain, they are, in fact, eating at home more often. In all matters, focus on the positive; continue to stay the course on working towards the plan, in this case reducing expense in incremental ways.

Memo 3: Conserving is fun.

In keeping with my plan to reduce and reuse, I just turned off lights in my home, including; the front porch light, my husband leaves the house while still dark, bathroom, kitchen, bedroom and night-lights. Amazing how many lights one turns on in the course of a morning. These little steps lead to bigger steps in all ways and especially in learning to conserve. For me it has become a game that is fun and energizing. Each day I seek ways to conserve, including drinking all the water in my glass or watering the plants versus dumping into sink. I will let you know when my utility bill comes what the savings are from this minimal effort. What can you do today to conserve?

Memo 2: Ugh, you must open your bills and statements.

Financial coaching involves helping people reach goals including such areas as reducing debt, buying a new car/home or paying for children’s education. One of the first and most difficult steps is to open the bills and statements. Avoiding review of bills/statements and discussing your financial situation with your partner/spouse can be difficult, even painful, however, it must be done.   This is true for all of us, even those who don’t struggle to pay bills. We  avoid opening statements as none of us like to see our financial condition changing due to poor market performance or worse over spending, interest and late fees. In moving towards financial wellbeing, one must have starting point and knowing and accepting where you are is the beginning of improving the situation. Start today, open, review and make one payment, and mail it too. 

Memo 1: Recycle, Reuse and Reduce

Recycle, Reuse and Reduce, a mantra I use in financial coaching. As I begin to do volunteer financial coaching, I am finding that it is fun and the whole family can participate. Our current 5 ideas for this week are the basics: take shorter showers, reduce TP use, unplug things not in use, turn off lights and run the cupboards/fridge bare to ensure you are not wasting food. With one family we are one day in and so far so far so good.  In the process of coaching, Joe and I are following in the recycle, reuse and reduce and finding pure energy and fun in the process. What are your ideas for recycle, reuse and reduce? Please share ideas.