Have you ever thought about starting your own financial journal? If not, maybe it’s about time you did…
What is Financial Journalling?
Financial journalling is just like keeping a regular journal, except it’s all about your finances! It’s a way for you to write about your finances on a regular basis… but what is this actually useful for?
Benefits of Financial Journalling
Financial journalling can help you understand your own financial behaviours and allows self-reflection, so that you can learn more about your thoughts and feelings about money.
It also enables you to identify your financial goals and priorities. It can help you to understand what it important to you and why, and what types of things you might want to achieve financially. You can learn more about financial goal setting on a free video from our online academy!
Keeping a financial journal can get you into a healthy routine of facing your finances head on rather than avoiding them. This is because keeping a financial journal can make your finances seem less daunting, because you’ve incorporated them into your life in a regular, manageable way.
There is also a huge benefit of stress relief, as the process of financial journalling can be very therapeutic. Harriet Fornby, ICAEW chartered accountant and founder of Below The Line Finance, says:
“Regularly checking on your finances is a really valuable self-care practice. It’s not just about staying informed; it’s about being intentional and mindful with your money. By monitoring your spending patterns, setting budgets, and tracking your progress towards your goals, you’re taking charge of your financial wellbeing and destiny”
In fact, the FCA found that in January 2023, 54% of UK adults reported feelings of increased anxiety or stress due to the cost-of-living crisis. This makes staying on top of your finances all the more important, as ignoring financial problems can make them, and your mental health, quickly spiral.
Setting a Money Date
You may also wish to set a ‘money date’ with yourself, which acts as a regular check in on your finances. This can help you to stay on top of your expenditures, meaning you’re less likely to lose track of things like what subscriptions you have!
This is particularly important if you are in a relationship, as a ‘money date’ identifies a specific time solely dedicated to discusses finances. This allows you to identify any differences in attitudes towards money, so that you can work towards managing those differences together. For more info on why talking about money in a relationship is so important, click here.
A ‘money date’ can also be a time for you to review your spending patterns to decide if there are any changes you want to make to your budget. Perhaps there’s something you’ve been spending too much money on, or maybe you have a bit more wiggle room than you thought to spend on things like days out or nice meals.