Now we know what you spend, lets see if you are overspending, and if so, where? This is also the step where we go through what you should be spending on what.


Sectioning Budget

So you have now a hot little copy of where your money is going. What next?

Lets crunch the percentages. Remember the percentages I listed in the introduction? If not, here they are again.


  • Food: 5%

  • Money for you- splurge: 20%

  • Fuel/transport: 5%


  • Housing (rent/mortgage): 30%

  • Utilities (power, gas, water, broadband, phones): 10%

  • Car costs: 5%

  • Insurance: 5%


  • Holidays/big ticket items: 5%

  • Investing/home loan: 15%

Your next job is to divide your budget into percentages and see how closely they mirror our ‘ideal budget’ percentages above. Do you fit?

Has it pinpointed any problems for you?
You have too much debt?
You are living in a house above your means, ie. your mortgage/rent costs are over the 30%?
You aren’t saving enough?
Or you are spending too much?

If so, good! Now you know, and now we can get you on the road to change, and ultimately, sitting back sipping cocktails in the world of financial freedom.

There might be a few times I make exceptions to these rules. The main one is if you have a young family. If you do, and your numbers aren’t stacking up against our ideal, don’t beat yourself up because you are going through one of he most financially expensive times that you will in your lifetime.

Congratulations are now in order!

Have a look at the amount you’ve just calculated, minus the 20% for savings, and your 20% for splurge spending and you now know exactly what it takes to run your world. These are your fixed expenses, so now if someone asks you, what you spend each week, you can rattle off with confidence, YOUR number. This is powerful stuff. Plus, you know exactly what you need to earn to keep your world spinning.


Move to the next step- Automation and sorting accounts