Posted On Sep 02, 2025

 

 

If it’s time for you to stop rearranging the deck chairs on the Titanic and start a purposeful financial audit – I’ve got you. Here we’re going beyond gathering statements, categorizing expenses and hoping to reduce spending. I’m going to give you the motivation to take action by looking at the WHY, WHAT, and HOW to get you into a different mindset with better results.

 

Why do a financial audit?

 

Auditing your finances is all about identifying how you’re spending your hard-earned cash. An audit works because it uncovers money pits you didn’t realize you’d fallen in, and gets you thinking about your financial goals. An audit will:

 

  • Identify overspending patterns

  • Calculate the true cost of ownership of items like a vehicle, your home, etc.

  • Catch any fraud or transaction errors

  • Pinpoint areas of spending to limit or reduce

  • Highlight items you’re automatically paying for but not using

  • Reallocate resources to higher priority items

  • Help you meet life goals that require money (like a degree, a home or the trip of a lifetime)

 

So, if that sounds good, it’s time to get started. What you need to ask yourself during an audit:

 

To get your finances on track, first get to the root of your current spending. Here’s what to ask yourself:

 

  • What are your goals for your earnings?

  • What are your life goals?

  • How much do you *think* you spend vs how much do you *actually* spend on things like entertainment, shopping, and other non-essentials?

 

Sometimes the biggest shock of a financial audit is how different your expectations are from your reality. So let’s now figure out what you should still spend money on, and what you shouldn’t. Here’s what to ask yourself:  

 

  • What spends bring you the most joy?

  • What items could you skip or cut back without much negative impact?

  • What spends contribute towards your life and financial goals?

 

You probably can’t afford (and don’t need) everything you feel like spending money on. You’ll have to make choices. A financial audit shows your financial pitfalls and puts those spending traps into perspective against your goals.

 

How to stay committed:

 

You found a reason to conduct this financial audit, figured out what spending to cut back on, and now it’s time to action your findings. How? Step one is to set both short and mid term goals in specific time frames and reward yourself when you achieve them. SMART goals never looked better.

 

If it works for you, find a free app to track your card taps, and set alerts so you know immediately when you’ve gone off track. If that’s not for you, here are more strategies on how to stay committed and accountable:  

 

  • Make a visual of your goal – print a picture, make a vision board, etc.

  • Share your goals with someone that will help keep you accountable

  • Treat it like the first year of dating – celebrate small milestones, talk about it with your friends, and ignore the sacrifices you’re making

  • Distract yourself when you’re tempted to spend – go for a walk, do a craft, get outside, make a puzzle, whatever gets you away from temptation

  • Make it a game, like a week-long no-buy or going one month without eating out. You can give it a fun name like ‘dine-in December’ or ‘the week without’

  • Make a direct correlation between the amount something costs and the number of hours you have to work to get it. If you earn $40/hour, and something costs $200, you’ll have to work for 5 extra hours to earn it. Is that worth while?

 

For the times when you’re getting derailed and need some reprieve, here’s how to make that work:

 

  • Try to use up gift cards, store credit or points (like Optimum or Aeroplan) on the out-of-budget items

  • Need more cash? Use marketplace or Kijiji to sell things you don’t need or want

 

Auditing your spending isn’t about guilt—it’s about gaining clarity. With a clear picture of where your money typically goes, and what you’d really like to use it for, you can make smarter choices and set yourself up for future financial success.

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