Episode: 359 - What Does Your Bank Statement Reveal About You?
Our Free Life Without Payments Workshop is on July 15th. You can sign up here: https://www.debtfreedad.com/pl/2148605132
Subscribe to Simplify My Money: https://www.debtfreedad.com/newsletters/simplify-my-money
Have you ever picked up your bank statement and wondered what story it tells about you? Does it show that you prioritize your family and future, or does it depict a picture of impulse buys and forgotten subscriptions? The truth is, your money always tells a story—it's just about ensuring it's the right one.
Today's financial landscape isn't just about numbers; it's about mindset, behavior, and honest reflection. The key to less financial stress is aligning where your money goes with what truly matters to you. Many of us say we value family, generosity, or simplicity, but often our spending doesn't reflect these values.
Reflecting on my own journey, I too believed my family came first, yet I was spending significant amounts on dining out and making random purchases that didn't support our long-term goals. It's common for our spending habits to reflect our emotions more than our values. If you've ever looked at your bank statement and felt disconnected, you're not alone. It doesn't mean you're bad with money; it just might mean there's a misalignment between your spending and your intentions.
Fortunately, changing this dynamic starts with clarity. Here's a simple yet powerful reflection exercise to align your spending with your values:
Step 1: Review and Reflect
Start by examining the last 30 to 90 days of your bank and credit card statements. There's no need to get into the nitty-gritty details; instead, look for patterns that emerge in your spending.
Step 2: Categorize Your Spending
Group your expenses into broad categories such as groceries, dining out, entertainment, shopping, savings, and debt payments. Once my husband and I did this, we discovered significant amounts going towards entertainment and dining, despite thinking we were living paycheck to paycheck. Recognizing these patterns allowed us to refocus our funds towards our actual priorities, giving us a feeling similar to a pay raise.
Step 3: Reflect Honestly
This step involves some tough reflection. Which categories stand out? Are there any surprises, or areas you're proud of? Conversely, are there expenses you'd be uncomfortable explaining to someone else? Take note of these feelings and insights.
Step 4: Align with Your Values
Identify your core values. Is it family, travel, health, security, or freedom? Now, compare this to your spending—does your money reflect these values, or is there a disconnect? This isn't about guilt; it's about realignment. Decide where your money should go to better match your values.
Take Small Steps
Once you have clarity on where your money goes, consider taking one small step this week to align your spending with your values. Perhaps it's canceling a subscription that no longer serves you or bringing lunch to work an extra day a week, putting the savings toward something more meaningful.
These incremental changes can add up significantly, reinforcing the message that you are in control. Your finances are a tool to shape the life you desire, not just the life you default to. Let your financial statement be a story you're proud to share—one that reflects your true values, not just your habits or distractions. You might even find a renewed sense of freedom and control in your financial journey.
Start aligning your spending with what truly matters to you today, and watch as these small shifts lead to greater financial empowerment.
Resources:
The Totally Awesome Debt Freedom Planner https://www.debtfreedad.com/planner
Connect With Brad
Website- https://www.debtfreedad.com
Facebook - https://www.facebook.com/thedebtfreedad
Private Facebook Group - https://www.facebook.com/groups/debtfreedad
Instagram - https://www.instagram.com/debtfreedad/
TikTok - https://www.tiktok.com/@debt_free_dad
YouTube - https://www.youtube.com/@bradnelson-debtfreedad2751/featured
Thanks For Listening
Like what you hear? Please, subscribe on the platform you listen to most: Apple Podcasts, iHeartRadio, Spotify, Tune-In, Stitcher, YouTube Music, YouTube
We LOVE feedback, and also helps us grow our podcast! Please leave us an honest review in Apple Podcasts, we read every single one.
Is there someone that you think would benefit from the Debt Free Dad podcast? Please, share this episode with them on your favorite social network!
Transcript
Amber Taylor: 0:34
If someone picked up your bank statement right now, what would they assume matters most to you? Would they see that you care about your family, your peace of mind or your future, or would they see daily takeout impulse Amazon orders and subscriptions you forgot you even had? This isn't about judgment. It's about alignment, because your money always tells a story. The question is, is it telling the right one?
Amber Taylor: 1:10
Hi, I'm Amber, today's host for the Debt-Free Dad podcast. My husband and I saved and paid off over $54,000 in just 20 months and have been living debt-free outside of our mortgage since 2018. Now we know that getting out of debt and building a life with less financial stress takes more than just numbers. It takes mindset, behavior and some honest reflection, and that's exactly what we're diving into today. Let's talk about how to make money match what really matters to you.
Amber Taylor: 1:45
Many of us say we value things like family, generosity or simplicity, but if we're honest, our spending doesn't always reflect that. I've been there, too, saying my family came first, while spending hundreds of dollars on eating out and just random purchases that really didn't support our long-term goals. Our money often reflects our habits, our emotions, not necessarily our values, and if you've ever looked at your bank statement and felt disconnected or discouraged. Just know you're not alone, and it doesn't mean you're bad with money. It means your spending might be out of sync with your intentions. The good news is, you can change that, starting with a little clarity. So here's a super simple but powerful reflection exercise that you can do Now. If you're driving or you're listening to this while you're doing something else, come back to this, make mental note and go and do this. It's going to make a huge difference. Step one what you're going to want to do Look at the last 30 to 90 days of your bank and credit card statements. No need to get super detailed. We're scanning for patterns, okay, okay. Step number two is group your spending into just basic categories Groceries, eating out, entertainment, shopping, savings, giving donations, that kind of thing, and debt payments.
Amber Taylor: 3:23
Now here's what happened when my husband and I did this, because this was such a huge thing for us. I did this because this was such a huge thing for us. We actually gave ourselves a pay raise because what we noticed was these huge discrepancy amount that was going to eating out and entertainment and we were like holy cow, how are we spending that much money on this? I thought we were living paycheck to paycheck. So when we were able to see that and really visualize it, it helped us to kind of hone things in and focus and put our money where our values were, where our priorities were, and they weren't in supporting a restaurant's bottom line. They weren't as much as we love to go and eat out and go out for concerts and that kind of thing. We were able to shift some things around and really get intentional with our money and in turn it gave ourselves a pay raise and we realized, holy moly, we weren't really living paycheck to paycheck. I mean it was tight, but we were able to refocus our money and put that towards debt to help us get even more disposable income and become debt free.
Amber Taylor: 4:36
Now number three. Here's the tough part Little reflection for you. You want to ask yourself what category stand out most. Are you like me, where it was food and entertainment? Ask yourself what surprised me or what am I proud of and what would I feel uncomfortable explaining to someone else if they were looking at these statements and really think about that and write those down.
Amber Taylor: 5:10
Then step four. Now you want to state your values. What are your values? If someone asked you what matters most? What would you say? Is it family? Is it travel? Is it health? Is it security, freedom, what are those values?
Amber Taylor: 5:28
Now look back at that spending.
Amber Taylor: 5:30
Is your money reflecting those values or is there some kind of disconnect?
Amber Taylor: 5:37
This isn't about guilt, it's about realignment.
Amber Taylor: 5:40
So really look at it.
Amber Taylor: 5:43
Where can you be putting that money to align better with those values?
Amber Taylor: 5:50
Now that you've taken a look where your money is going, what's one small step that you can make this week to bring your spending closer to your values?
Amber Taylor: 5:59
Just one. Maybe you cancel a subscription that doesn't really serve you anymore. Maybe you bring lunch to work one extra day this week instead of spending it on takeout, and put that money towards savings. Maybe you open a sinking fund for something important instead of just charging it and paying it later. These little shifts add up and they send a powerful message that you are in control and your money is a tool to build the life you actually want, not just the one you default to. So I'm going to leave you with this. Your bank statement already tells a story. Make sure it's one that you are proud of. Let your money reflect your real values. Let your money reflect your real values, not just your habits, your stress or your distractions. Maybe you'll give yourself a pay raise, just like we did. And hey, if you find something interesting and you want to share it with us, make sure you leave a comment in the show notes.
Brad Nelson: 7:06
Now listen if you're ready to break free from living paycheck to paycheck which, if you're listening, I hope you are. You want to reduce financial stress. You want to build savings. You want to finally pay off debt for good, but you're not sure where to get started. Don't worry, we've got you covered here at Debt Free Dad. Simplify my Money is sent each Sunday to your email. We make it easy and Simplify my Money. It's your step-by-step roadmap to better financial control, and you're also going to learn easy to follow strategies to manage your money effectively. You're going to get stress-free money decisions that will help you simplify your financial life with proven tips that actually work. You're also going to gain the tools and the confidence to tackle your financial goals head on. You can sign up for Simplify my Money by clicking the link at the top of the show notes. Thanks for joining us on today's show and we will see you guys on the next episode.
