4 Steps to Start Cleaning Up Your Money Energy – Ep 23
How is your money situation looking?
There’s absolutely no shame in having a messy money situation—I am literally in the business of helping people with their money and even my finances fall into disarray now and then.
The thing is, clean money energy has a positive effect on so many other aspects of your life—I know this first-hand! So let’s dig right into 4 steps for starting this understandably scary but totally necessary process!
Step 1: Identify your income
Let’s start with the money you make! Step number one is getting clear on exactly what your money inflow looks like.
Write it all down. List out your business’ revenue or your salary, as well as income from any other sources, including dividends and tax credits.
Then, add it all up. That number will either freak you out or totally float your boat. Either way, you’ve done the first bit—good on you!
Step 2: Extricate your expenses
Now that you know what’s coming in, it’s time to figure out what’s going out. The easiest way to do this is to break your expenses into categories and then tally it all up. For now, stick with the last three months, since that will give you the most up-to-date information.
First up: business expenses. These have their own little subcategories, like payroll and benefits, cost of goods, client acquisition, and taxes. Next, list your home expenses. This includes your rent or mortgage, utilities, grocery costs, healthcare and wellness, and so on. Then, the last two: your personal debt from credit cards or other sources and your vacation and entertainment budget.
That’s a lot of items, so if you need some help checking all these boxes, download my financial tracking spreadsheet—it’s a game-changer!
Step 3: Subtract Step 2 from Step 1
Alright, you got through the tricky number collection part that makes most of us feel a bit woozy. Take a deep breath and dive into step three. It’s an easy calculation, but the result is pretty telling.
Take your expenses total and subtract it from your income total.
That’s it. If that number is positive, you have an overage you can invest or put into savings—nice! If it’s negative, don’t stress it. It just means you have some different planning to do. You’ll figure it out, and the Rich Life Revolution podcast is here to support you.
Step 4: Connect with your credit
Finally, put those numbers away (just for now, you’ll definitely need them again!) and hop on Google to check your credit score and order yourself a credit report.
I’ll be digging deep into improving your credit score in Episode 25. For now, look through your report to make sure everything is accurate. Then, pour yourself some tea and sit back. You just powered through the hardest part, and I’m so proud of you!
Check out this episode of the podcast for more super actionable advice on how to start getting a handle on your money. Trust me when I say it will make a ton of difference.
If this activity shows you that you need assistance with your business or personal finances, my team can help. Our supportive group, the Biz Money Society, is excellent for DIYers. Alternatively, book a call with Alchemy Accounting for one-on-one help—we’ll give you a hand or set you up with the perfect money expert. It’s what we’re here for!