A Simple Monthly Check-In With Your Finances Makes A Big Difference
Establishing a monthly money routine was a game-changer for me and can be for you, too.
In my 20s, I realized I needed a process to keep my finances on track. So, I started doing these steps each month. Over the years, I’ve fine-tuned my approach as my goals and circumstances changed, and doing so has made a significant difference in my finances.
By following these simple steps each month, you will have a proven system that reduces stress and gives you a complete picture of your finances.
Whether you are trying to build savings, tackle debt, or plan for financial freedom, this simple monthly routine will help you manage cash flow, spot money problems, and reach your financial goals.
Enough talk. Let’s get moving.
Monthly Money Routine In 7 Easy Steps
Disclosure: At no cost to you, I may get commissions for purchases made through links in this post.
1. Track All Your Expenses
Start by tracking every dollar you spend on coffee, dinner out, or a subscription service. Use an app or a simple spreadsheet to make this easy.
When I started tracking my expenses, it was surprising how quickly the “small stuff” added up. Awareness is your first step toward smarter spending.
Dig Deeper – How To Track Your Spending
2. Verify Your Income from All Sources
After tracking your expenses, move to your income.
Make sure every paycheck or side gig payment matches what you expect. This is especially important if you have multiple income streams.
Once, I noticed a missing freelance client payment, which I would have overlooked without checking my monthly earnings.
Consistently verifying income keeps you from accidentally missing payments. Furthermore, knowing how much money you make provides the information to ensure you live within your means.
3. Compare Your Income versus Expenses
Next, compare what you earned and spent. This step can be eye-opening!
When your expenses exceed your income, it’s time to revisit your spending habits. Understanding this balance lets you decide where to trim costs or allocate funds differently.
Frugal living isn’t just about cutting out fun things but reallocating funds to reach significant goals. Tracking income versus expenses over time will also reveal trends and help you make smart budgeting decisions.
Helpful Tips – 10 Ways to Spend Less Than You Make
4. Check Your Primary Bank Account Balance
Check your primary bank balance after objectively looking at spending and income.
Your bank balance should reflect sufficient funds to cover this month’s bills. Regular checks will also catch any unusual activity.
Thus, this step will help you spot possible issues before they add up and create a money problem.
The best is yet to come, but before you continue, PIN IT:
5. Review Investment Accounts and Calculate Your Net Worth
If you have investments, review them monthly. Look at your stocks, retirement accounts, or other places you hold money.
This is also a good time to calculate your net worth. Net worth is the value of everything you own (assets) minus what you owe (debt).
Tracking net worth monthly is a smart way to measure financial progress. Even if your net worth is low or growth seems slow, consistency will pay off in the long run.
6. Save or Invest Excess Funds
If you have leftover money after expenses, add it to your savings or investments. This is where you will start gaining traction toward financial security.
Thus, make a plan for every extra dollar. Whether you’re focused on building an emergency fund or exploring new investment ideas, directing surplus money to a clear purpose prevents mindless spending.
Following this step, each month builds a healthy saving habit contributing to long-term financial stability.
Recommended resource – Investing may seem complicated, but it doesn’t have to be. For example, I learned a ton from the Financial Freedom Dividend Investing Course offered by Simply Investing.
7. Review Progress Against Your Financial Goals
Finally, take a few minutes to evaluate your progress toward financial goals.
Regular goal reviews keep you focused and on track. Are you closer to buying a home, paying off your debt, or achieving other milestones?
Checking in with your goals each month provides motivation and accountability. I started this routine when I was a long way from financial freedom, but seeing even small increments toward that goal made it feel possible.
Make it happen – 5 Ways To Stick to Your Goals
How To Establish A Productive Money Routine – Final Thoughts
Consistency is key to financial freedom, and this monthly money routine will help you build momentum and stay on track.
Over time, these steps become second nature, allowing you to reach financial goals more clearly and confidently. Making this monthly money routine part of your life makes financial habits more manageable, and bad money habits gradually disappear.
Thanks for reading, and good luck with your finances. Before you go, PIN IT:
Author Bio: Tom Scott founded the consulting and coaching firm Dividends Diversify, LLC. He leverages his expertise and decades of experience in goal setting, relocation assistance, and investing for long-term wealth to help clients reach their full potential.