How to Turn Overspend Into Overflow by Facing Your Spending Habits
Jun 27, 2021
In this episode of Profits + Prosecco Podcast, I’m going to be talking about spending, a topic most of us don't want to face. Life is expensive, I get it. Everything seems like it's constantly rising and even as a bookkeeper, I feel stressed by the never ending costs of adulthood. So if you're ready to turn your overspending habits into overflow, stay tuned for more details!
But before we dive right in, welcome to the Profits + Prosecco Podcast! I’m your host, Katie Ferro, CPA, reformed rule follower, creator of Booked Out Bookkeeper, mom to 3 little ones, and Kajabi enthusiast.
This podcast is for entrepreneurs who desire to change their life through their profitable business, and for bookkeepers and accountants who want to escape the 9-5 and start a simple scalable bookkeeping business like I did.
Bookkeeping increases profits and profits change lives. So pop some bubbles and let me show you how!
In this episode, you'll learn everything you need to know about facing your spending habits and feeling good about what you’re spending money on, which is knowing your numbers. For even more juicy details, listen to ALL of episode 30 of the Profits + Prosecco Podcast on your fave streaming platform.
How to feel good about your spending.
The absolute BEST way to get a handle on your spending and feel good about it is to see what's happening. When you see that picture of what's actually happening, you can improve the way you feel about your financial situation (if it needs improvement).
Get an idea of what's happening so you can have the bigger picture right in front of you. This is exactly how you can get in control of things!
This can be extremely stressful, overwhelming, and uncomfortable but just practice.
These emotions can happen for a couple of reasons. The main emotion that can come up during this exercise is emotional. When you're able to have a system in place and bring yourself to constantly look at what's happening, you can be manageable and flip the narrative.
Steps you can take to turn overspend into overflow.
This is a five phase process so bare with me…
If you would like this entire tool laid out in front of you, you can check out my system The Spending Savior.
Preparation phase: Prepare yourself for the exercise you're about to uncover. Stop judging yourself for the situation you've gotten yourself into and don’t blame anyone else. While your feelings are understandable, looking at them too much will perpetuate the worst outcome. Prepare yourself mentally and emotionally for this exercise.
Step #1: Write down all your fears surrounding money. Allow the words to flow without feeling the need to suppress your feelings. Write down all the judgement you place on yourself and you can even write letters to yourself to forgive yourself for anything in the past surrounding that financial situation. I want you to also write down all the things you would do if you had less debt. Finally, write a thank you letter to your future self thanking you for facing those fears.
Step #2: Map out your earring categories and spending categories. Look at all your transactions so that you're able to see where most of your money is going. Once you place each transaction into a category, mark them as a one time purchase or a recurring purchase. Add a column for regret and ask yourself which purchases you regretted.
Step #3: Review what you're seeing. If you're using my spreadsheets, it will automatically summarize money that you brought in and money that you spent. So it will basically calculate for you whether there's overflow or overspend. Seeing this visually on a chart will be so eye opening to you.
Step #4: Plan, plan, plan! This is where you will start budgeting because once you see where you're spending, you can create a realistic budget and adjust as necessary. See what's necessary and organize what you're going to spend in the next months.
Step #5: Finally, this is where you look at the balances in your bank account and your credit cards. A sheet within my workbook will allow you to enter tour balances and play with paying down amounts. This is where you'll see what you have in the bank and what's on your cards.
How to Turn Overspend Into Overflow by Facing Your Spending Habits: The Bottomline
I hope this episode helps you turn your spending problem into a saving habit. It's going to take a lot of preparation and practice but once you get there, it'll all be worth it. Be sure to check out my entire system for more guidance and help when it comes to saving money and look at what you have.
If you enjoyed the episode, please take a second to rate and review. Each review helps us reach and inspire more entrepreneurs and bookkeepers just like you.
Don’t forget to take a screenshot, share it in your Instagram stories, and tag me at @orderlyaccountingbykatie. Cheers to your inevitable success and I’ll see you in the next episode!
