Embracing 2020: A Fresh Start for Finances

The dawn of 2020 brought with it a wave of enthusiasm, an energizing promise of progress and modernity. As the curtains fell on 2019, I found myself bubbling with anticipation, particularly about one thrilling prospect – launching a brand-new budget for the year ahead! Imagine my delight as the clock struck midnight on January 1, 2020, unveiling a blank canvas, my budgeting dashboard inviting me to dive in and design my financial journey.

The Power of Numbers

I'm sharing this in my inaugural blog post of the decade because I genuinely believe that mastering the art of income and expense tracking is a pivotal step towards financial empowerment. When you can pinpoint where your hard-earned dollars originate and how they're spent, you’ve already conquered half the battle. This strategy isn't just a lifesaver for those on tight budgets; it's also invaluable for anyone, irrespective of their income. Many who earn a lot still find themselves puzzled by financial constraints.

Year-End Revelations

After a complete year of budgeting, I've eagerly gathered interesting insights that any spreadsheet enthusiast would appreciate. Jonny, my partner in financial adventures, might not share my enthusiasm when I bring up our annual spending figures. For instance, “Guess how much we splurged on groceries last year?” The jaw-dropping response was $11,176.54, averaging out to $214.93 weekly—oops, I missed the mark on my goal to keep it under $200.

Utility Insights

Then there were our utility costs. “Guess how much we spent on electricity?” A more manageable $1,527.52 over the year, translating to $127.29 monthly, which wasn't too shabby. But the real kicker came next, “And how much for diesel for heating?” A staggering $1,381.96, averaging $26.57 per week. Jonny rightly pointed out that with our chilly Central Otago winters and his remote working situation, we needed to keep the house cozy.

A Lesson in Fuel Expenses

Don't get me started on fuel! “What’s our total petrol expenditure for the year?” The answer was $3,301.51—ouch! That’s roughly $63.49 per week. There was much discussion about whether that was steep, considering our small-town driving and frequent trips to larger cities like Queenstown and Dunedin. I’m vowing to walk to work more often!

The Importance of Awareness

This financial intelligence is pure gold for me. By analyzing last year’s total expenditures—$950 weekly plus investments—I can anticipate our 2020 spending patterns. For a couple like us, both working part-time, knowing these figures is essential. Maintaining a strategy of “spending less than we earn” is crucial for creating a surplus to invest, something we achieved in 2019. Phew!

Planning Ahead for Peace of Mind

If I hadn’t tracked this data, I would have underestimated our weekly spending considerably. It’s astonishing how expensive life’s basic necessities have become! However, armed with this knowledge, I can effectively plan for the year ahead and ensure our income is aligned with our expenses.

Strategizing for 2020

While I'm not particularly goal-oriented, I resonate deeply with the idea of being a proactive planner. Keeping tabs on our income and expenditure is an incredible tool to navigate family finances and prevent emergencies. For 2020, I’m preparing for some key expenses: braces for my daughter, for which I’ve set aside $40 a week; car insurance due in March, fully budgeted at $850; and a holiday fund, currently at $1,000 and still growing.

A Call to Action

The start of a new year inspires many to initiate changes, and the influx of new readers to my blog signals that enhancing financial literacy is a common goal. I wholeheartedly encourage you to begin tracking your own earnings and spending, as it is the cornerstone to reducing debt, improving spending habits, and ensuring you can invest in the life you desire.

Your Financial Journey

There’s no perfect way to track your finances. I began jotted down notes on paper, transitioned to a self-made spreadsheet, experimented with an American app, and eventually found joy in a local budgeting app (shout out to PocketSmith!). For those seeking community support, their Facebook group “PocketSmith Pals” is thriving and full of resources. Explore various systems and find one that resonates with you and your family. Understanding your finances is the key to achieving and maintaining financial success.

Here’s to Financial Wisdom!

Happy saving! Together we can step into a brighter financial future.