financial coaching

I Spent How Much???

Warning: Please don’t read this if you have a sensitive disposition!

My inbox is full of new Financial Coaching enquiries – people wanting to work with me.

What’s going on?

Don’t get me wrong, it’s a good problem to have… but I only ever work with four Financial Coaching Clients at a time, so my waiting list is growing!

I feel awful about the the fact I just can’t help everyone, but maybe I can help in this small way by reading this blog.

So many people just don’t know where their money goes. Ok so that problem has been around forever, but it’s worsened with lockdown -there’s an epidemic of Unconscious Spending.

Bear with me, let me explain…

Financial Coaching Client 1

I had a client who earns well but just seems to have too much month left at the end of the money.

She’s in her late 20s, recently divorced (no children), lives in the north west, has a great career, earns £80,000 a year, has £18,000 debt, with no savings and has no idea where all her money goes….

She’s renting a gorgeous apartment, would love to stop renting and buy her first home, but has no idea how to make it happen. That’s where I come in.

I asked her to complete a financial audit – it’s a simple step by step process, we break it all down and take a really good look.

It’s been even more important during lockdown and as we ease out of lockdown and many people have turned to spending to “cheer themselves up” and actually their daily deliveries have become a highlight, and broke up the working from home monotony…

Some people try to make it sound much more sophisticated than it actually is, I’ve heard it called a Financial Diagnostic A Financial Deep Dive – it’s simple – let’s get focused and really see what you spend your money on.

It’s best to take a 3 month period. Ready for the uncomfortable questions??

  • How much do you spend on food?
  • How much have you spent on Deliveroo / Just Eat deliveries?
  • How much on takeaway coffee?
  • How much on eating out / socialising?
  • How much on Amazon deliveries?
  • What do you pay for that you’re not using or currently enjoying?

She was horrified by her answers ….

£1670 on food – that’s £556 a month!

£451 on Deliveroo / Just Eat  = £150 a month!

£87 on takeaway coffee  = £29 a month!

£898 on socialsing = £299 a month – and that’s during a lockdown!!

£760 on Amazon = £253 a month!!!!

Plus a monthly car payment that would make your toes curl as it hasn’t been driven for months!

In typical kondo style when she took a long hard look at it – not much of her spending was bringing her “joy.”

She’d got sucked into the “treat cycle” to make her feel better, because she deserved it, because she works hard and deserved a treat to reward her hard work. But the “treating” got out of hand and the “treat” became the norm.

Financial Coaching Client 2

Another client who had got drawn into the “treat cycle” is Genna, who eats well and exercises but who has an incredibly sweet tooth. 

Genna’s “treat” happens at the end of her working day. Typically she’d pop out for a walk, to get her steps in and some fresh air and she’s got in the daily habit of just popping into the newsagents to buy a snack, usually nuts and chocolate and occasionally a magazine – because she deserved it! 

That daily habit was costing Genna £10 a day – £300 a month. 

Her sweet tooth treat cycle was costing her £3,600 a year and probably a significant dentist bill!!

So if you’re reading this and feeling a little awkward or uncomfortable about what I’m sharing – you have a choice.

We are so lucky these days with the way our bank accounts work, they can literally do the analysis for you. Many of my clients are huge fans of Monzo Bank – love the bright orange card and it will literally do the analysis for you – so there is nowhere to hide.

It’s all to create Conscious Spending Habits.

The small purchases all add up – it’s sounds boring but it’s the simple methods that always stand the test of time and let’s face it they work!

Financial Next Steps

So what’s the takeaway and what am I suggesting you do?

Take a moment and acknowledge what has happened. How it makes you feel and how you can replace that feeling you get from the “treat.”

Track your purchases, find out where your hard earned money is going. Be conscious with your spending, then if you need to, take action. Head in the sand / ostrich impressions never turn out well! And putting off taking action because you feel overwhelmed by the size of the issue never works!

If you need help, and want to talk to a qualified Financial Coaching who importantly won’t judge you please don’t put it off – get in touch by calling me on 07969 859749 or email chat@rachelrowley.co.uk and let’s see how I can help you!

Rachel x