What Does Your Bank Account Say About You?
I love this question because our spending habits, whether as individual human beings, or as companies, say a lot about our priorities. Or, rather, they say a lot about what our priorities actually are, but not necessarily what we want them to be. Whew - that’s confusing. Let me break it down.
If you look at my family’s spending over the last three months the four categories with the highest expenditures are:
Home (i.e. mortgage, taxes, insurance, utilities)
Kids (i.e. childcare, clothing, activities)
Food (groceries & restaurants)
Financial (taxes and retirement saving)
If you look at my business’s spending over the last three months the four categories with the highest expenditures are:
Payroll (by FAR the highest expense)
Software (Zoom, Quickbooks, etc.)
Office expenses (mostly tech equipment)
Meals
I feel good about both of these lists. My business expenses are largely related to my personal expenses (i.e. payroll) and my personal expenses are aligned with my values. That isn’t to say there aren’t things I’d like to change. I’d love if travel was a more common personal expense and I look forward to sending my two young children to public school in a few years, but I’m happy to pay for a home I love (and spend a LOT of time in!) and for childcare that is safe, loving, and nurturing. I’m glad I am able to spend on food the way I do and I’m glad my family is paying our taxes and saving for retirement.
All of that being said, when I first started unpacking my finances (I’ll get more into the nitty gritty of this another time!) I did not at all feel good about the lists. I spent a lot of money on clothes that I didn’t necessarily need or even wear. I spent a lot of money on debt repayments that I knew weren’t strategic. I spent money on food that I didn’t really enjoy because I wouldn’t plan far enough ahead to have groceries at my house. I spent money in a way that reflected my lack of clarity and connection with my finances.
And I felt SO. MUCH. GUILT. I felt guilty that I wasn’t trying harder. That I didn’t know what to do. That I didn’t understand how to fix the problems because I didn’t even know what the problems were. I felt guilty that I had just stuck my head in the sand.
I wish I could say that I figured out this perfect, easy system for getting rid of that guilt, but truth be told, it just took time, reflection, a lot of hard work, and reminders to be kind to myself. I may not have always made financial decisions that made me proud, but I worked hard to change that. I learned a lot on my own and then, eventually, I went back to graduate school and switched careers to focus on helping others expel that guilt I once felt and to create systems and structures that mean that when they open their bank accounts they can feel proud too.
If you’re in the sticking-your-head-in-the-sand phase, I feel you. It can get better. I promise.
If you’re in the midst of figuring it out -- keep going! You got this!
If you’re in the proud-of-my-spending bucket -- yay! Keep it up my friend!
No matter what, I’m rooting for you.
XOXO,
HOT TIP CORNER
The annual option for subscriptions is often significantly cheaper than the monthly subscription option. The trick is making sure you are ready for that larger lump sum transaction when it comes along! Put in a calendar alert so you don’t forget about upcoming expenses and check here in the next newsletter for a trick on making sure your account is prepared for annual costs!