Money Mondays: Know Your Numbers

Some people will tell you that you need to know your numbers because it will make you better at budgeting. I think it goes beyond that. It's not just about knowing if your budgeting correctly by living by the 65/20/15 rule. 

It's about the transparency and aligned action that happens when you know them. 

I talk to people, and have personally experienced in my life, money come in - like a big bonus - and then poof it's gone before you can recall how or what you spent it on. 

When you know what your numbers are you get to stop wasting your energy on the questions of where did my money go and get to focus back on being one step closer to your dream life. 

You move from reactive to proactive. 

So how do you do it?

First thing is, you have to start budgeting. In a spreadsheet? Hell no, queen. You do NOT have time for that. Download Monarch or another app. It will aggregate your transactions and breakdown for you where your money is going. Buyin gyou time back from the hunt to figure it out. 

Once you know then you can move from just looking at things in a sense of the numbers and operate from percentages. Percentages are easier to operate within. They only go up to 100. A number your nervous system is very familiar with and very acclimated to. 

So the next time the $100k bonus hits, you don't send yourself into a full panic of what do I do with this $100k or how do I hold on to this, you fall back to the percentage. 

$100k bonus =

$65k goes to expenses or something responsible (investing, down payment for a rental property or house, pay off your car note, make sure your emergency savings is funded, etc) 

$20k is purely for fun. This can be to literally anything and absolutely guilt free. Maybe it's a phenomenal European vacation (or a few of them) or the new wardrobe you've been eyeing, or towards a Birkin. Do whatever you want girlfriend.

$15k goes toward investing in an asset that will pay you back. Stocks, index funds, industrial real estate, rental properties, doesn't matter what it is, but it needs to pay you. 

Finances dont have to be complicated. It's often overcomplicated so that we feel like we can't start. 

So take a deep breath and get to know your numbers. Set up the system that you need so that when big, good things happen, you stick to the plan. Your future self will thank you.

And if you want help, this is the work I do in my one-on-one mentorship.

Nicole Ingham