Make Your Finances Work for You: Part 1
Clarity and Purpose
Money can feel like a constant balancing act, especially when life is busy and expenses appear everywhere.
When you step back and examine your finances more closely, you will find that with clarity and intention, they can start working for you.
This first chapter of a three-part series focuses on gaining clarity and identifying your priorities, two critical steps that lay the groundwork for financial confidence and freedom.
Start with awareness
Understanding your finances is like sorting out the family sock drawer. At first, it is an intimidating mix of odd pairs and missing pieces, but once you have matched them all up (and accepted that some socks are gone forever), everything feels much more manageable.
What comes in? Where does it go? This clarity empowers you to identify patterns and take control.
Take Avi and Leah*, a young professional couple who came to Mesila. They thought they had their budget under control, carefully tracking regular expenses. After working with a Mesila coach, they realised their plan had not accounted for Yom Tov expenses, school fees, and other periodic costs. These unaccounted-for surprises kept derailing their finances. By tracking their actual spending over a few months, they created a clear picture and adjusted their budget accordingly.
Clarity identifies where your money is going and helps you make informed decisions about where it should go.
Focus your finances on what matters
Once you understand where your money is going, the next step is to focus on what is truly important. Ask yourself: What do we value most? Whether it is saving for a family trip, funding a simcha, or building a safety net for unexpected costs, the key is to align your spending with your priorities.
David and Sara*, for example, wanted to save for a family trip to Eretz Yisrael. By making this their focus, they reassessed their spending habits, switched to a more affordable supermarket, and cancelled unused subscriptions. They even took on small freelance jobs to boost their income. Every extra pound went directly toward their holiday fund.
To make this process smoother, create an intentional spending plan. First, cover essentials like housing, food, and school fees. Then, allocate funds for what matters most to you. Consider setting up separate accounts for specific goals, such as Yom Tov expenses or a savings fund. This makes it easier to see your progress and keeps you motivated to stick to your priorities.
When your spending reflects your values, it is easier to say “yes” to the things that matter and confidently pass on the rest.
Track your progress
As you implement your spending plan, it is important to track your progress by periodically reviewing your finances to stay aligned with your plan and make adjustments when necessary.
Think of this as your financial GPS. If you have ever missed a turn while driving, you know it is not the end of the world. The GPS simply recalculates the route. Similarly, tracking helps you stay focused on your goals, even if you need to adjust along the way.
For instance, if an unexpected expense comes up one month, tracking helps you rebalance the following month without losing sight of your long-term priorities. These regular adjustments allow you to maintain steady progress and stay in control of your finances.
Celebrate small wins
Finally, do not forget to celebrate your wins. Every step you take toward aligning your finances with your goals is an achievement worth recognising. Whether you stick to your monthly spending plan, reach a savings milestone, or gain clarity about your finances, these moments are worth marking.
Celebration does not have to mean spending money. It could be as simple as sharing your progress with your family or sneaking off to eat the last piece of chocolate without anyone noticing. You could also take a moment to reflect on how far you have come and feel proud of your achievements.
Recognising your efforts helps reinforce positive habits and keeps you motivated for the journey ahead.
Gaining clarity and aligning your spending with your priorities are decisive first steps in making your finances work for you. With these tools, you can approach your financial decisions confidently and purposely, knowing you are focusing on what truly matters.
*Names changed
