Finances: How to do a Monthly Finance Health Check

I have never been shy to talk about my relationship with money on social media. And I’m not sure this post is the post to give you my back story but that will come very soon. But for context, it was only after my 41st birthday in 2020 that I found some focus and drive to really sort my finances out and get 15k or so worth of debt cleared on an average income with huge outgoings. It meant I really had to get straight with my outlook.

Recently I popped a poll in my Instagram stories on whether you wanted me to talk more about money or not and it came out a resounding yes (for the 4 or so of you who voted no, please skip this post!). So here I am.

I want to stress that I find figures and money super mind boggling and so I am coming at this from the angle of that. Over the years I’ve tried different money managing apps and budget templates but have just found them overwhelming and convoluted for my personal situation. Some of this stuff will be too basic for some folk, but for me I needed to keep it simple and manageable.

I will disclaim all these money posts with: I am not a financial professional, I am purely talking from my own experience. If you are struggling with debt please reach out to Step Change who might be able to help you. Likewise, if you are in a position to consider a money coach, please email me and I will send you a few recommendations.

Also, an incredible resource is The Financial Well-being Forum by Clare Seal aka My Frugal Year.

Schedule Your Check In.

I find habit is the best way to get on top of money. I always schedule my money check in for the last Sunday of the month. I choose a Sunday because I know that’s the day I always have free and it’s the day where I have time at home to check in with self. I put my nature playlist on to ground me, light a candle, pour a cuppa and get stuck in. It is also such a good feeling to start the month with the feeling of knowing where I’m at and what I have to spend.

Check in on Budgets.

I have three sheets in Numbers that I use - one for my monthly personal budget, one for tracking my debt repayments and assets and another for my business accounts. Having these templates helps me move from month to month being able to plan and check in with what’s going out of my bank.

First I check in on my personal finances starting with my income figure (I sometimes need to pay myself less or can give myself a little more on good months) by checking all is in order for the month and there isn’t anything additional. With some subscriptions like my toilet roll and deodorant there will be some months that I don’t need a delivery so I update the sheet with a zero (always satisfying) and make sure I’ve skipped the delivery on my account with the brand.

I also go through my last months bank balances to check there isn’t anything going out that I’ve missed that I need to add. With my personal template I check in with it throughout the month by ticking off what has left my account and I know I’m not going to get any nasty surprises. I then check any appointments I have for the month (physio, hairdressers etc) and make sure I have the money available. If not, then I move the appointment to the next month and put half of what it’s going to cost to go towards it next month.

Have a Separate Spending Account.

I find this the most helpful part of budgeting. My current account is with the bank I’ve been with since I was 12 - I am loathe to change before I get a mortgage because it looks good having the same bank for over 30 years! But, a few years ago I opened a Monzo account and every month I transfer a set amount to it purely for day to day spending. Within this spending account. I usually take into account weekly food shops, social life and leisure. It’s probably important to stress that I do budget a monthly food shop from my current account as this tends to be the same figure and helps me get organised for the month that I then only topping up fruit and veg/fresh food from my Monzo account.

Check in on Subscriptions.

Check your iTunes of similar account for anything coming out this month. Also, forecast for future months and if it’s looking like it might be tricky to find the whole sum then create a pot to start putting money aside each month. For instance - I have an annual FIIT membership as it’s much cheaper to pay annually and I have a pot where I put £10 aside each month so I’m covered when the payment comes up.

Create Pots for any Spends Coming Up.

As detailed above, having pots is incredibly useful to help with any big spends - I have my hair cut and coloured every six months and I know I won’t have that amount spare after all I’ve budgeted for so I out £25 aside a month which really helps spread the cost. I only have one pot that I name ‘annual spends’ which covers all of these. I also pay annually for any insurance which saves a lot (and is one less debt on your credit file) so split that payment into 12 and that also goes into my annual payment lump sum. To give you a picture: in all my annual lump sums are - pet insurance, contents insurance, haircuts, FIIT, Flo (period tracker app), iTunes Match. And then in my business account I have a van repair and insurance pot as my vehicle is mainly used for work but if yours isn’t it’s an idea to have this in your personal account and if you don’t end up using it, bonus - extra money for treats or savings.

Budget for Treats, Birthdays and any one offs.

I would say this has been so essential for my financial well-being. It’s the game changer. Having a budget for spending on clothes, skincare or interiors takes any guilt spending out and allowing yourself some money to spend will help with unhealthy splurging. You become really aware of what you spending on and how much you are spending. For me, I have only been buying clothes out of my Vinted earnings as it helps me compartmentalise but I put aside £50 every month for skincare or healthcare. To work out what you have to spend on treats etc, do all of your non variable figures first and then see what is left so you can divvy it out among non essentials. None left for treats at all? Don’t lose heart, if you’re clearing debts before you know if one will clear and you’ll be able to make space for treats. Communicate to your friends and family that you’ll be doing homemade gifts or no gifts until you have your head above water. I’ll be doing a post soon on ideas on how to earn extra income or save on outgoings.

Hold off From Payday Spending.

I know it's tempting to go all out on payday and go buy treats. But I would say, just take a beat, start off the month well and then see where you’re at on the second week. Save any products/clothing/things you would like to buy to a secret Pinterest board, note or Things to Get Me (which is great for when people ask what your want for a birthday or Christmas) and then revisit it in the second week and see if you still really want it. With ADHD I know all too well how damaging impulsive spending can be and it really is all about just fighting the first urge. I’m going to do another post on tips to curb it but highly recommend cancelling your Prime account - it’s better for you and the planet. I’ve saved hundreds by not being able to just click ‘buy now’ on products that I thought ‘were just a fiver’ and in the grand scheme of things I didn't really need or I could have bought from my local hardware shop or the like.

Check in on Your Credit Score.

So satisfying to see your credit score go up! Once upon a time you would have to apply and pay to see what credit agencies have on file for you but times have changed and it’s easy to check all three main agencies with three companies: Credit Karma, Clearscore and Credit Club. Each will give you a fairly accurate insight as to how your credit records are shaping up and will also give you insights on how to improve it.

I check in on my credit score with all three at the end of every month, putting to task any suggested improvements, making sure I’m still on the electoral register and making sure my income details are correct. It’s become a bit of a game with myself on how to push my scores up further.

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Do you have a tips on monthly finance check ins? Or perhaps questions or something you’d like me to cover? Comment below!