It’s a line that has been said by many across the years in different ways. In the 1800’s, Lord Kelvin said “To measure is to know.” More recently, management guru Peter Drucker said, “If you can’t measure it , you can’t manage it.” But my favourite line is from H. James Harrington:
“Measurement is the first step that leads to control and eventually to improvement. If you can’t measure something, you can’t understand it. If you can’t understand it, you can’t control it. If you can’t control it, you can’t improve it.”
It’s a sad fact that most of us fear and stress about money – or the lack of it – every day. But it doesn’t have to be that way! Taking control of your financial situation can allow you to make your money work for you.
Take the time to have a detailed look through every cent you spend and start setting some limits and goals. And don’t feel like this is a bad thing – even millionaires live on budgets! Being money wise can certainly pay off, so here are some tips on how to gain financial transparency:
Write Down All Your Expenses
Organise all your outgoings into categories such as; groceries, clothing, mortgage payments, bills, petrol, entertainment and so on. You’ll soon see how everything adds up!
Don’t judge yourself during the tracking time but once you have gathered all the information have a good look at it and think about where you could pare down. If you are struggling keeping track of all your spendings, check out our interactive spending plan here, so you can input your spendings and we’ll help you create a free management plan for your family!
If you prefer the pen and paper approach, or an app for your phone – great! Either way, the action here is simple – JUST DO IT! When you start looking at your in and out goings you will begin to see where your unnecessary spendings lie.
Now it is time to think about what you consider essential spending. Instead of focusing on ‘more or less cost’, focus on what you value the most. It is about spending money on what is important to you – and whether or not that is MORE important that your end goal, whether that’s owning your own home, travelling the world, or something else.
Maybe you’ll decide that instead of eating lunch out everyday, you’ll spend a few hours on Sunday preparing it yourself.
Did you know that buying one coffee everyday could amount to over $1,200 a year? If you think about the long term the money you save on small spendings like that could help you pay put a deposit on a new home. The little things do add up.
Direct Debits and Subscriptions
It is also a good idea to have a look at the direct debits and subscriptions you currently have. Maybe you didn’t realise that you were still a member of that gym or that you were still subscribed to that online Doctor Who fan magazine you signed up to ten years ago.
If it’s not absolutely necessary – or more important than your BIG GOAL – cancel it ASAP!
Partner with Someone Who Can Keep You Accountable
If you haven’t or don’t want to spend the time investing in your own knowledge of your financial situation – partner with someone who can do this for you! It’s always good to have someone who is impartial and knows your goals, so they can keep you motivated while also teaching you what you need to know to make your money work for you.
Whether it’s a friend, colleague, financial planner or your own Personal Money Coach – you’ll see the benefits of being accountable to someone else… just like our happy clients have done. See how they’ve reduced their debt by hundreds of thousands of dollars!
At Crown, we offer a free money coaching session where you’ll get your own Personalised Financial Dashboard, proven strategies to help you pay less tax, pay off your debt in record time, measure you current cashflow position – AND a bonus copy of my eBook, ‘7 Ways to Boost Your Cashflow’. Click here for more info.
Stick With It!
Once you have achieved financial transparency and have taken control of your money the key is to stick with it. This will take dedication but in the end you will be rewarded for your effort.
Ready to get full transparency on your financial situation? Claim your FREE coaching session with a Crown Coach now, and get your bonus copy of Scott’s eBook – ‘7 Easy Ways to BOOST Your Cashflow‘.
“Having a Personal Money Coach is like having a personal trainer, but for your bank account. Someone to hold you accountable, keep you motivated, and encourage you every step of the way.” – Scott Parry, Founder & CEO
Scott Parry is one of Australia’s leading financial entrepreneurs, helping everyday Australians achieve a debt-free lifestyle. His unique cashflow management program, Crown Money Management, has been featured on Today Tonight, A Current Affair, and in various media publications. He was named as one of INTHEBLACK’s Young Business Leaders of 2013 for his commercial and philanthropic efforts in Australia. Scott is a passionate supporter of Starlight Foundation, RSPCA, Bravehearts Foundation and Awareness Cambodia.