Audit Your Wallet: Build A Roadmap To Your Money Goals
When was the last time you really took a good look at your wallet—not just the cash or cards, but the entire structure of your financial life? If you’re like most people, it’s probably been a while. But here’s the thing: this simple exercise, which I like to call “auditing your wallet,” can completely transform how you approach your finances. If you’ve strolled my social media content over the last couple of years, this line should be familiar to you! He he.
This idea of “Auditing Your Wallet” is one of my favorite sayings and strategies. Why? Because it’s about more than just dollars and cents. It’s a way to truly understand your financial picture, identify hidden leaks, and map out a path toward achieving your money goals. When I first started using this term, I realized how much it resonated with people—it’s simple, actionable, and packed with potential. And it applies to everything from budgeting to spending to financial planning to saving to investing, heck even estate planning!
[Want to know how long I’ve been saying this? This blog post is a revamp of this old blog post with a YouTube included.]
Here’s how to audit your wallet step by step and turn it into a powerful tool for financial growth, especially with budgeting!
Step 1: Take Inventory Of Your Finances
Start by gathering all your financial data. This includes:
Bank and Credit Card Statements: Look at the last 3 months of transactions.
Bills and Subscriptions: Note all recurring charges.
Loan and Debt Balances: Include interest rates and minimum payments.
If you have a budget - pull it, and compare it to what you’re doing. Also, get to know how you were feeling when you were “funding”.
This step is all about awareness. The data tells you where your dollars are going and how you feel connected to the decisions (look up behavioral finance). When I first did this myself years ago, I was surprised by the number of forgotten subscriptions and small charges that added up over time. I do this 2x year. When I was depressed, the dollars dripped hard - even when there wasn’t much there to spend. It’s a little like opening a drawer you haven’t looked in for years—you never know what you’ll find.
I talked about this part of the exercise in this blog post.
Now, let’s break it down with the highlight system:
Green: Essential expenses (bills, groceries, subscriptions you use)
Yellow: Random spending (impulse buys, stuff you didn’t need)
Red: Things that should be in your budget but aren’t (like car maintenance or savings for emergencies)
Questions To Ask:
Are there any charges you didn’t authorize or forgot about?
Are your current accounts serving you well (e.g., fees, interest rates)?
Are your spending habits aligned with your financial goals?
Step 2: Identify Money Leaks And Potholes
One of the reasons for Step 1 is for people to understand where their money is going. Often when I work with people on their budget, they know the money goes into the account when they get paid, but don’t get how they position to pace throughout the month/bi-weekly. The thing with it is that you have to find the Money leaks + potholes in your spending and compare it to your plan.
Money leaks are those small, consistent expenses that drain your wallet over time.
Potholes are bigger, unexpected financial hits that derail your progress.
Common Money Leaks:
Unused subscriptions (streaming services, gyms, etc.)
Daily convenience purchases (coffee runs, takeout, etc.)
Overdraft or late payment fees
When I first started paying attention to my money leaks, I noticed how much I was spending on convenience buys like takeout during a busy week or subscriptions I forgot to cancel before the trial was up or I would switch to another email (if you know, you know). Tackling those leaks helped me redirect that money toward things that truly mattered to me. And it’s a key part of my budget analysis process.
Examples Of Plugging Your Potholes:
Build a sinking fund to cover unexpected expenses. You know I love Ally.
Review insurance policies to ensure you’re adequately covered and the cost isn’t sinking your budget for that coverage.
Step 3: Create A Budget That Works In Reality
Forget about rigid ratios that don’t fit your life. Your budget should reflect your actual income, expenses, and goals. If you want to know about those budget ratios or types of budgets, check out this blog post. But here’s how to focus on your getting “it” with the reality vs a ratio.
Start With Essentials: Calculate what you need for rent, utilities, groceries, and minimum debt payments.
Set Aside Savings: Even if it’s just $5 a week, consistency is key. You know I’m going to say HYSA.
Give Yourself Breathing Room: Leave some flexibility for unexpected costs or threats - a sinking fund is the way.
I’ve seen too many people try to squeeze their lives into unrealistic budget templates, only to give up in frustration. A realistic budget is one that works for you, not against you. If the ratio works, werk it Fren!
Step 4: Build Savings And Investments
Once you’ve plugged money leaks, focus on growing your wealth creation. This is done by saving and investing the money you have. No, you don’t have to have a lot to grow a lot. It’s about being consistent with what you have while building a management system to grow as you get more. Here are some ways:
High-Yield Savings Accounts (HYSA): Great for emergency funds or short-term goals.
Sinking Funds: Set aside money for upcoming expenses like car repairs or vacations.
Investing: Open a brokerage account for long-term goals and start small with index funds or ETFs. If you don’t have enough for a full share of stock, fractional shares of $5/$20 in an ETF, Index Fund, or individual share of ____ would be good on the fractional.
When it comes to investing, I want you to start with the 401K/403B you have at your employer (especially if they have match), but build towards getting that IRA and brokerage account booming. These are going to be income streams for later and/or retirement!
This is where your wallet audit starts to pay off. The money you save from cutting leaks can be funneled into building a financial cushion or even creating wealth over time.
Step 5: Revisit Your Financial Goals
I’m a financial planner, you know that your financial goals were going to bring this up! It all adds up to your roadmap. Your financial goals should guide every decision you make. Reassess them regularly to stay on track.
Short-Term Goals: Paying off credit cards, and building a starter emergency fund (at least 1 month of your base expenses). I talk about these types of goals here.
Medium-Term Goals: Saving for a down payment, and tackling student loans.
Long-Term Goals: Retirement planning, building generational wealth.
One of the things I love about auditing your wallet is how it helps you connect the dots between your day-to-day spending and those big-picture dreams. It’s empowering to see how small changes can lead to big results.
Step 6: Behavioral Finance: Understand Your Money Habits/ Mannerisms
It’s not just about what’s in your wallet but how you interact with your money. Behavioral finance focuses on the psychological aspects of financial decisions.
What triggers your spending? Is it boredom, stress, or something else?
Do you struggle with saving? Why? Is it a mindset issue or a practical one?
Are your goals realistic? Setting unattainable goals can lead to burnout and frustration.
By understanding the "why" behind your financial habits, you can make lasting changes that stick. I’ve found that this part of the audit can be the most revealing—and the most transformative. Your origin story of money will give you some context clues as to why you overspend on sale items just because or that you overcompensate for how you money.
Step 7: Make A Plan For Each Scenario
Once you’ve audited your wallet, create action steps:
If you’re overspending: Implement spending limits or switch to a cash-only system.
If your accounts aren’t working for you: Research and switch to better financial products.
If you’re not saving enough: Automate small transfers into a savings account.
Your Wallet Is Your Roadmap
"Audit Your Wallet" is one of my favorite savings tips, but it’s about so much more than saving money. It helps you understand where you are now and builds a clear roadmap to where you want to be.
I often say that this exercise is like a GPS for your finances—it shows you the best route to your destination, starting exactly where you are today. Remember, this isn’t a one-and-done exercise. Revisit your wallet audit every 3-6 months to make sure you’re staying on track and adapting to any changes in your financial situation.
If you’re ready to take control of your money but don’t know where to start, let’s connect. I can help you build a plan tailored to your life and goals. Your financial roadmap is clearer than you think!