Our strategy to get you to financial fitness involves a few steps. We say it’s as simple as ABC.
A is for Analyze, as in “analyze how you are spending your money”. Just as A is the first letter in the alphabet, the first step to becoming financially fit is an analysis of your expenditures.
Look at your bank statements for the past 6 to 12 months. Dig out your credit card bills. Try to account for how you spent all of your take-home pay.
You should be able to easily account for rent or mortgage payments, insurance premiums, gas, electricity, cell phone bills, car payments and other debt payments. But how did all those cash withdrawals get spent? Often there is insufficient detail on your credit and debit card statements to identify the businesses where you spent money, leaving you scratching your head over this or that charge.
Get as detailed as you possibly can with itemizing where all the money was spent. (It will be important when we talk about the letter B.)
If you are like most consumers, there will be a big percentage of your expenditures you won’t be able to nail down. You have plenty of company wondering where all the money went.