Welcome to my site about making more of your money. You may like to subscribe to the RSS feed for the latest articles. Thanks for visiting!
To get the most from your money in the long-term, you need to know what you own, what you owe, how much you bring in every month from your earnings, savings and investments, how much goes out again, and thus whether you’re living beyond your means.
Completing this personal reckoning is step two of my rather dramatically entitled 10 eternally true steps to financial freedom.
If we don’t take stock, we’re liable to do silly things like:
- Saving into a bank account earning interest at 5% while simultaneously accruing interest on a storecard debt at 26%.
- Working overtime, then buying takeaway food and late night drinks as a reward and so, post-tax, negating the overtime we’ve earned.
- Devoting evenings and weekends to our investments, to the detriment of the job or second income stream that’s actually bringing in the loot.
- Spending hours looking for the cheapest books or CDs online, while paying thousands extra a year on an expensive mortgage that’s moved onto the lender’s standard variable rate.
- Talking celebrity gossip at parties, when we could be enthusing to a cute stranger about how we’ve reduced our grocery bill down to £30 a week.
Okay, maybe that last one is an acquired taste.
How to take stock of your finances
