Where is My Money?

As we begin another financial year, it is a good time to reflect on our personal and family finances. When you look back at the previous year, how do you feel? Have you managed your money well, or do you wish you had spent or saved differently?

Many of us have said—or heard someone say—“I don’t know where my money goes!” A friend of ours, who heads the finance division of a company, once joked, “I leave personal finances to my wife. She handles it better—I cannot!”

Interestingly, neither earning a large paycheck nor working in a finance-related role guarantees success in managing personal finances. The core issue is often the absence of clear guidelines for spending. Many of us struggle to budget, spend impulsively, or fail to plan for saving and investing.

The good news is this: things can change for the better. Financial stability is not achieved merely by earning more, but by learning the art and science of personal financial management. Below are some practical principles to help you take control of your finances.

1. Review Your Past Spending

Understand Your Spending Style

Before you decide how to spend your money, it is important to know where your money has been going and how much you tend to spend. This requires intentional planning.

Begin by maintaining a daily record of your expenses. Keep a small notebook or use a digital app to note every expense. Set aside a fixed time each day—perhaps before bedtime—to review your spending.

Regularly review your weekly or monthly plan so you can make informed decisions about the next day’s expenses. When you understand your spending habits, you are better equipped to avoid overspending or making unplanned purchases.

2. Plan Your Spending: Budget and Stick to It

Effective financial planning includes:

a. A clear understanding of income and expenses
This includes allocating money for essentials such as housing, healthcare, transportation, education, debt repayment, taxes, and utility bills.

b. Intentional saving and planned investments
With easy access to credit—such as zero-interest offers, buy-now-pay-later schemes, credit cards, and online banking—it is easy to spend beyond one’s means if self-discipline is lacking.

Impulsive or indiscriminate spending can quickly become a habit and severely damage your financial health. Prioritise how your money will be used before it is spent.

3. Spend Within Your Means and Save at All Costs

This principle emphasizes balancing daily living expenses with planned savings and investments. Spend only the amount allocated for maintaining yourself and your family—not the money set aside for savings or investments.

This may require evaluating ways to reduce expenses without compromising savings goals. While savings can be used in emergencies, they should be treated as a reserve, not as readily available spending money.

In a market-driven economy where advertisements constantly encourage spending and saving is reduced to a quiet inner voice, it is crucial to live by financial principles agreed upon by spouses—and shared with children.

4. Build Financial Transparency at Home

Be honest about money matters with your spouse. Avoid hiding expenses or debts. Involve your children in age-appropriate ways by helping them understand budgeting and spending.

For example, create a regular family activity where each member tracks and discusses their monthly spending. This builds awareness, responsibility, and shared accountability.

5. Start Saving Early

Saving is not about how much you save, but how early you start. Early savers benefit from time and compounding, often accumulating more than those who save larger amounts later in life.

6. Adopt Healthy Financial Habits

• Start a realistic budget and follow it consistently

• Avoid borrowing money from family and friends

• Do not take responsibility for loans on behalf of others without careful consideration

If you do choose to guarantee or take on a loan for someone, ensure there is a transparent system of accountability—and be prepared to repay the loan if necessary.

7. Explore Ways to Increase Income Wisely

Look for legal and creative ways to earn additional income by leveraging your skills, knowledge, and interests. However, do not allow the pursuit of money to rob you of essential time with your family or yourself.

True financial health involves balance—between earning, saving, spending, and living meaningfully.

Final Thought

Managing money well is not about wealth alone, but about discipline, planning, and values. As you step into this new financial year, may you grow in wisdom and confidence as you take charge of your personal finances.