A lack of understanding and control over personal finances is a problem that plagues many American households. With a recession looming over our heads, it’s important now more than ever to get a grip on cashflow and prepare for potential crises. High expenses, overspending and building up debt can keep you tethered to a job that takes up a lot of time, taking you away from living the homestead life you want.
Living a homestead lifestyle does not have to cost a lot of money, it is very possible to homestead on a low income if the money is managed properly. The #TrackAuditThrive challenge brings you deep into your personal finances and helps you overcome the financial hurdles to attaining the homestead lifestyle. Tracking every dollar and auditing spending habits to pave the way for financial success! Whether you’re saving up for a starter land plot, aiming to manage debt, or just want to gain a clearer picture of where your money’s going, this challenge is for you.
Let’s empower ourselves with knowledge, accountability, and smart financial decisions.
Phases
Track: Use a spreadsheet, envelopes or app to track all of your money transactions for the month and categorize them to get an observational report of your spending habits. Include all transactions from checking, savings, and credit card accounts.
Audit: Analyze your spending habits to see areas of strength and where there is room for improvement. See if your actions are aligning with your goals. If you did not have a written budget before, this is your opportunity to create a basic version. A budget has three parts: income, fixed expenses and variable expenses.
Fixed Expenses: Amount due stays the same or averages month to month and is not easily changed. EX: Mortage/rent, debt payments, insurance.
Variable Expenses: Amount can change from month to month and can be adjusted. EX: Groceries, gas, household, entertainment, clothing.
Thrive: Congratulate yourself for taking the time to educate yourself on your personal finances. Use this momentum alongside personal accountability to make a positive change in your life. Use a cash envelope system if you have a hard time staying in budget and have a tendency to overspend on your variable expenses.
Rules
1. Set Your Intention: Before diving into the challenge, take a moment to write down your intention for participating. Whether it’s to gain better control of your finances, save for a specific goal, or simply develop healthier spending habits, clarifying your intention will guide your journey. Remember, the first part of the challenge is just to observe your average spending habits and behaviors without judgment. Let your intention be your compass as you embark on this transformative journey.
2. Track Every Transaction: Log every expense and income, whether it’s cash, transfers, or credit card purchases. No transaction is too small to track! You can cater how you collect your info to personal preference. Whether you prefer tracking on pen and paper, electronically, or both I highly suggest getting physical copies of bank statements for cross reference during the audit phase.
3. Use One Bank Account: Simplify your tracking by using just one bank account throughout the challenge. This will streamline your record-keeping process and make it easier to monitor your spending and income.
4. Categorize Each Transaction: Assign a category to every transaction, such as groceries, transportation, entertainment, etc. This will help you identify important figures like expense to income ratio, spending percentages, and areas where you can potentially cut back.
5. Set Weekly Check-Ins: Set aside time each week to review your transactions and update your records. Check-ins will ensure that you stay on top of your finances and catch any discrepancies early on.
6. Keep Receipts for Review: Every time you make a purchase, stash your receipts in a designated folder or dedicated bag. At the end of each week, take time to review these receipts along with your transactions. Being able to visually see how often you swipe your card(s) in a week or month can help reevaluate your relationship with money and how you like to spend it.
7. Reflect and Adjust: At the end of each week, take a moment to reflect on your spending habits and financial goals. Are there areas where you can improve? Adjust your budget and spending habits accordingly to stay on track with your financial objectives.
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Resources
52 Week Meal Prep and Grocery List Book
Free Weekly Meal Plan and Grocery List PDF
Share your journey with the hashtag #TrackAuditThrive on Instagram and Facebook! Join a community of likeminded homesteaders for support and accountability towards a debt-free lifestyle. Don’t miss out on this opportunity to audit yourself, set financial goals, and pave the way for a brighter financial future!
