Money Mindfulness by Naomi Levy

When it comes to your finances, a little mindfulness can go a long way. Knowledge is power. Even if you don’t know anything about finances you can at least know the basics of your own money and that will already be a huge step for your financial health. There are just two very basic questions you can ask yourself to help get you there. 

Question One: How much money do I actually make?

For those of us that rely on tips as our primary source of income, this can be a trickier question to answer than it might appear. Do you know how much money you make a year? A month? Are your averages different in January than they are in July? What about cash tips? Do you have any idea how much cash you’ve walked with in your pocket last week? Last month? With the amount you make fluctuating daily, you’ll need to think of this as averages. Spend some time tracking how much money you’re actually making each night and learn what your weekly average and monthly average is. This can’t be done with just a week or two of information, especially in our current ever-changing landscape. Create a new habit, log it in your phone or carry around a small notebook. It’s important to know how much money you actually make or can expect to make depending on the season so you know how much money you can spend. Which brings me to the next question…

Question Two: How much money do I actually spend?

What are your fixed monthly expenses (ie. rent, utilities, etc.)? Do you know how much you spend on shift drinks after a long day? If you’re walking with cash, it’s easy to feel like it’s burning a hole in your pocket. At the end of the night, it’s easy to spend money thoughtlessly. Really, any time it’s easy to spend money thoughtlessly. Even in quarantine, thanks to good ol’ internet shopping. It’s okay to treat yourself as long as you have a good idea of your full financial picture. Are you spending less than you’re making? Are you spending every dime? Are you saving any money? One of the easiest ways to track how much you’re actually spending is to put all of your purchases on electronic forms of payment (ie. debit or credit cards). Depositing your cash as much as possible also has the bonus of helping you know how much you make. When you spend electronically, the bank does a lot of the work for you in tracking how much you are spending. There are some great apps that can help track too (ie. Mint). 

By just taking a little time to be mindful of how much money you have coming and going, you will be able to make the adjustments you need to achieve a better financial picture for yourself. By having one less shift drink can you be saving towards buying a car? A house? Retirement? Is it time to start a side hustle? Do you need to seek financial help? The best way to know is to get to know your money.