In today’s fast-paced world, managing personal finances can often feel overwhelming. Many people find themselves reacting to financial crises rather than proactively managing their money. One powerful habit to cultivate for financial health is holding a monthly finance meeting with yourself or with your partner. This practice can transform your relationship with money, help you achieve your financial goals, and bring peace of mind. Here’s why it’s essential.
1. Gaining Financial Clarity
A monthly finance meeting provides a dedicated time to review your financial situation comprehensively. This includes examining your income, expenses, savings, and investments. By doing this regularly, you can gain a clear understanding of where your money is going, how much you’re saving, and where you might need to make adjustments. This clarity is the foundation for making informed financial decisions.
2. Tracking Progress Towards Goals
Setting financial goals is a crucial step in achieving financial success, whether it’s saving for a down payment on a house, building an emergency fund, or planning for retirement. A monthly finance meeting allows you to track your progress towards these goals. By regularly reviewing and adjusting your savings and investment strategies, you can ensure that you’re on track to meet your objectives.
3. Identifying and Correcting Problems
Regularly reviewing your finances helps you spot potential problems before they become crises. For instance, you might notice an increase in unnecessary spending or realize that you’re not saving as much as you should. Identifying these issues early allows you to take corrective action, such as adjusting your budget, cutting back on discretionary spending, or finding ways to increase your income.
4. Reducing Financial Stress
Financial uncertainty can be a significant source of stress. A monthly finance meeting can alleviate this by providing a sense of control over your finances. When you have a clear picture of your financial situation and a plan to manage it, you’re less likely to feel anxious about unexpected expenses or financial emergencies. This regular check-in helps to foster a sense of financial security.
5. Enhancing Financial Discipline
Consistency is key to financial success. By committing to a monthly finance meeting, you instill discipline in your financial management. This routine keeps you accountable and encourages responsible financial behavior. Over time, this discipline can lead to better financial habits and a more stable financial future.
6. Making Informed Financial Decisions
When you regularly review your finances, you’re better equipped to make informed decisions about spending, saving, and investing. You can assess the impact of potential financial decisions on your overall financial health. For example, before making a large purchase, you can evaluate how it will affect your budget and savings goals, ensuring that your decisions align with your long-term financial plan.
7. Preparing for the Future
A monthly finance meeting is an opportunity to plan for the future. Whether it’s anticipating upcoming expenses, or planning for major life events like buying a home or starting a family, regular financial reviews help you stay prepared. This proactive approach ensures that you’re not caught off guard by financial surprises and that you’re ready to take advantage of financial opportunities.
8. Encouraging Continuous Improvement
The financial landscape is constantly changing, and what worked for you last year might not be the best approach today. A monthly finance meeting encourages continuous improvement in your financial strategies. By regularly reviewing your financial situation and staying informed about changes in the economy, HMRC laws, and investment opportunities, you can adapt your financial plan to maximise your success.
How To Implement Your Own Finance meeting
Look over your budget for the month. Spot what went well and what didn’t.
If you have debt, is it going in the right direction?
Did your savings and investments go up or down?
Did you have any emergencies come up that could have been prevented?
Finally, did your net worth go up?
So, how did mine go? I had a good month, I didn’t track every expense, I only do this once every few months if I feel like my spending is creeping up or just out of curiosity. I got some bonuses from my savings, I made some money selling some old stuff on Facebook Marketplace and my business has started picking up again as it does in the summer months. I put the extra in my emergency fund to top it up as I used some of it a few months ago on a deposit for a car as my last one was costing an arm and a leg in maintaining it.
Conclusion
Holding a monthly finance meeting with yourself is a powerful practice that can lead to better financial health, reduced stress, and greater confidence in your financial decisions. By taking the time to regularly review and manage your finances, you can ensure that you’re on track to achieve your financial goals and build a secure financial future. This proactive approach is not just about managing money; it’s about taking control of your life and future. Make this meeting a non-negotiable part of your routine, and watch as your financial confidence and stability grow.
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*Quick disclaimer – I am not a financial advisor, I do not give financial advice and you are responsible for your own financial wellbeing 🙂
Lauren <3