Budgeting Step 2: Gaining Awareness of Your Expenses

Welcome back to our Budgeting Basics series. At Summit Path Coaching, we know that lasting change isn’t just about information; it’s about action, and action comes from clarity, confidence, and understanding what drives you. Before you can confidently tell your money where to go, you have to understand your current financial reality, beliefs, and attitudes about money.

In our ASCEND coaching framework, this process represents the very first step: A — Awareness. This stage is designed to identify the client’s current financial reality and establish the starting point with honesty and without judgment.

Today, we are taking a structured, disciplined approach to finding exactly where your money is currently going so you can build and maintain a realistic budget.

The 5 Steps to Track Your Expenses

1. Gather Your Financial Evidence

Start by collecting your last month’s bank statements, credit card statements, and any other evidence of money spent.

2. Categorize Your Spending by Priority

Chunk up the different categories of spending. We recommend organizing these from highest to lowest priority:

• Shelter: Rent/mortgage, utilities (electric, water, gas, garbage), phone, and insurance (if not included in your mortgage).

• Food: Groceries, dining out, kids' lunches, and little snacks and treats.

• Transportation: Car payments, gas, public transportation, and auto insurance.

• Clothing and Shoes

• Subscriptions: TV streaming, phone apps, gym memberships, etc.

• Kids’ Needs: Daycare, sports, and activities.

• Loan Payments: Credit cards, student loans, personal loans, and other consumer loans.

• Medical Expenses

• Hobbies

• Miscellaneous: For all the small, one-off costs.

3. Review and Adjust

Look closely at your categorized expenses. Do they look like they would be the same next month, or do they need adjustments? For example, if you were on a vacation last month, your restaurant category might be higher than what you expect for this upcoming month.

4. Forecast Upcoming Expenses

Look ahead to the next month and forecast any irregular costs. For example, anticipate expenses like a kid's field trip, new sports costs, or upcoming taxes.

5. Compile Your Baseline List

Now, put all these expenses into a clean, organized list. This is what you forecast it costs to live over a month with no spending habit changes.

Congratulations—you are almost ready to complete the budget! Establishing this baseline is a critical step to deconstruct harmful financial habits and cultivate sustainable wealth-building behaviors.

Come back next Monday to see how your budget comes together as we move from Awareness into Strategy!

Ready to Take the Next Step?

You deserve a financial future that feels stable, intentional, and achievable. If you want a private, one-on-one partnership focused entirely on you, we are here to help. We act as your guide, providing the accountability that keeps you moving forward.

• Schedule a Call: Click Services below to learn more or schedule your free Discovery & Assessment Consultation.

  
  

ASCEND: Your guided path to clarity, confidence, and long-term financial freedom.