Do you check your personal finances, income, and expenses at the end of the month? Here’s my monthly money routine that helps me stay on top of my finances.
February has just started, and I’ve already published my January report. This is the perfect time to dive into my monthly money routine and see how I manage my personal finances.
This routine can help you understand your financial situation better. Remember, personal finance is personal, so what works for me might not work for you. Don’t compare yourself to others; instead, personalize this routine to fit your needs.
Staying organized with your finances is a continuous effort. You can’t just set it and forget it; you need to check in periodically to see where you stand financially. At first, it might feel uncomfortable to dive into your finances, but with time, it gets easier and even enjoyable as you start seeing the results of your hard work.
Here’s the monthly money routine I use to stay on track with my goals:
1. **Track Income and Expenses:** As soon as the month ends, I track my income and expenses. I check where I spent my money and if my spending aligns with my budget. I also verify my income, ensuring there are no errors in my salary payout.
2. **Evaluate Spending:** I review how much I spent in each category, noting what went well and what needs more attention. I don’t use my credit card often, but when I do, I ensure the charges are correct and include these expenses in my total overview.
3. **Check Passive Income:** I review my passive income sources, like peer-to-peer and crowdlending platforms. I track how much passive income I earned, reinvest it, and calculate my annualized return. This helps me see how I’m doing compared to other months.
4. **Side Hustle Income:** I also track income from side hustles like blogging, cashback, and selling items online. I aim to increase this income month over month.
5. **Compare Income and Expenses:** After noting all my expenses and income, I compare them to see the gap between my monthly expenses and income outside my job. This motivates me to cover my expenses with alternative income sources.
6. **Check Bank Accounts:** I review the values of my bank accounts to calculate my net worth for the month. I make an overview of my money in bank accounts, savings, and brokerage accounts. This helps me course-correct if needed.
7. **Manage Cash:** If I have too much cash, I transfer some to my brokerage account. I try to keep six months of savings in an emergency fund and leave a buffer in my checking account. The rest goes to investments.
8. **Calculate Net Worth:** I calculate my net worth by tracking all my investments and accounts. This motivates me as I see my net worth grow over time.
9. **Track FIRE Progress:** I check my progress towards financial independence (FIRE) using metrics like net worth, passive income, and percentage to FIRE. This keeps me motivated and focused on my goals.
10. **Set and Review Goals:** I set yearly goals and break them into smaller monthly goals. I review my progress each month and adjust as needed. Publishing these goals on my blog helps with accountability.
11. **Blogging Stats:** I track my blogging stats to see how my blog is growing. My current goal is to publish quality posts consistently, which I believe will naturally increase traffic.
12. **Write Monthly Reports:** After completing all the steps, I write my monthly report posts detailing my income, expenses, passive income, side hustle income, and goals. If you don’t have a blog, you can simply review your numbers.
Having a monthly money routine helps you stay in control of your finances and know where you stand financially. I enjoy gathering all this information and seeing my progress. Do you have a monthly money routine? How do you keep track of your finances each month?