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The "Saturday Morning" Guide to Auditing Your Own Money

Stop wondering where it went and start seeing where it's going.

Ever feel like your bank account has a leak? You earn decent money, but by the 20th, you’re wondering where it all went. Most people think a "financial audit" is some scary corporate thing with spreadsheets and stress, but honestly, it’s just a Saturday morning with a coffee and your bank statements. It’s about facing the music so you can actually start making the music.

Where is the Leak?

The first thing I do is pull up the last three months of transactions. Don't just look at the big stuff like rent or EMI. Look for the "vampire" subscriptions that ₹499 gym app you haven't opened since last Diwali or the streaming service you got just to watch one show.

I once realized I was spending nearly ₹8,000 a month just on random "ordering in" because I was too tired to cook. That was a reality check. When you see the total number for a specific habit, it hits differently than seeing small daily debits. If you see it on paper, you can't ignore it anymore.

The Net Worth Reality Check

An audit isn't just about spending; it's about what you actually own versus what you owe. It’s the difference between looking rich and being wealthy.

If your liabilities are growing faster than your assets, you aren't getting richer; you're just maintaining a lifestyle on borrowed time. I always say, your "Net Worth" is the only number that matters at the end of the year. It's your actual financial scorecard.

Practical Steps to Fix the Mess:
Provided info can be incorrect and change over a time! Please consult your financial advisor before taking any financial decision.

Final Thoughts

A personal finance audit isn't about punishing yourself for buying a coffee. It’s about making sure your money is going toward things you actually value. Stop drifting and start driving. Once you have a map, the journey gets a lot less stressful.

FAQ: The Stuff People Actually Ask

1. How often should I do this audit? Once a quarter is the sweet spot. Doing it every month is exhausting and overkill, but waiting a year means you've probably let bad habits settle in too deep.
2. I have a lot of small debts, which one do I pay first? Emotionally, paying the smallest one feels great (Snowball method). Mathematically, paying the one with the highest interest rate saves you more money (Avalanche method).
3. Do I need a fancy app for this? Not really. A simple Excel sheet or even a physical diary works best. Apps sometimes categorize things wrong, and doing it manually forces you to actually "feel" the expense.
4. My audit shows I'm in the negative every month. What now? Don't panic. You have two levers: Increase income (side hustle, ask for a raise) or Decrease expenses. Usually, cutting the "wants" for 3 months gives you the breathing room to reset.
5. Should I include my house in my net worth? Only if you intend to sell it. If you live in it, it's a roof over your head, not a liquid asset you can use for groceries in an emergency.
6. What is a "good" savings rate? If you are saving 20% of your take-home pay, you are doing okay. If you hit 30-40%, you are on the fast track to financial freedom.