Monthly review.

At the end of every month (or shortly before it ends), it is imperative to do a review of your spending for the past month and an overview of the month to come. So, how do you do this review?

For the month ending/ended, look at the following questions/to-dos, your spending log, and budget: 

1. Did I/we go over budget in any of the categories?

   1. If yes, why? 

   2. Do I/we need to make overall budget adjustments?

   3. Were there any true spending anomalies in the month? Were there things I/we could have planned for and need to plan for in the future? There are rarely unexpected expenses.

   4. If I/we went over, what is our plan to do better the next month?

2. Did I/we spend in alignment with our values?

   1. If no, explore why. 

3. Did I/we spend in alignment with our goals?

   1. If no, explore why.

4. Did the things I/we bought bring me/us joy or serve my/our needs?

5. Transfer money to/from sinking funds.

6. If you have debt, celebrate how much you paid off by tracking your progress.

7. If you don’t have debt, celebrate your progress on by tracking your savings/investment goals. 

For the month starting/started:

1. Look at your calendar:

   1. Are there any holidays/birthdays/events/appointments that will affect your budget?

   2. Are there any one-time expenses (taxes, annual fees, memberships) coming up? Does the budget reflect those expenses?

2. Look at your budget: 

   1. Are my/our categories within our budget? Do there need to be any adjustments? 

   2. Are there any areas in the budget where I/we could do better?

   3. Are there things in the budget I/we spend money on that do not align with our values?

   4. Are there things in the budget I/we spend money on that do not align with our goals?

3. If you have debt, what is the goal amount to pay off for the month?

4. If you don’t have debt, is your savings/investment goal reflected in your budget?

Both a past-month and current/future-month analysis are important steps in brining awareness to spending, habits, values, and goals. In the past-month review, we look back at the previous month and check on our successes and failures in the budget. “What went well? What didn’t go well? Should we have been able to plan for what didn’t go well? Could we have paid off more debt/saved more/invested more?” Or maybe after looking at the previous month, the review sounds like “We lived within our values; we worked towards our goals; we felt safe and secure.” 

When reviewing for the month to come, think about what events might be occurring that you can plan for. Do you have a birthday or holiday during the month that the budget needs to work around? Do you do a monthly food category, and it is a five-week month instead of a four-week month? Do you have an expensive appointment or membership due during the month? Knowing that the budget is constrained, do you need to adjust some purchases to account for these variables?

If you’re in a relationship, this review should be done with your partner. It is a chance to communicate about the upcoming month and ensure that you understand one another and share the same values and goals. 

Connect your monthly review to something you enjoy – maybe you do it with a beer, a cocktail, or a nice cup of hot tea on the couch. Perhaps you reward yourself afterwards with a show you like. The monthly review should be an enjoyable event – assessing our financial situation is empowering. By creating this awareness, we can work towards the life we want. 

If you don’t already do a monthly review, start today. And, write it down on your calendar so that you are prepared to do it for the next month.