Become your own personal accountant - 12WFFC -

Become your own personal accountant – 12WFFC

Welcome to the 12 Week Financial Fitness Challenge – 12WFFC – where you will spend 12 weeks to learn how to take control of your finances and get your money into shape for life.

We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!

12WFFC Banner

To make the most of this program, you should aim to complete all of the items on your weekly checklist and read all the material available because as they say, knowledge is power!

You’ll set financial goals and make plans to pay back your debts. Each week you can review your progress and make real changes to improve your financial situation for life.

Need help with any of the weekly checklists? Email or tweet to @finderau with a #12WFFC.

Step 1: Print out your last three bank statements

The first step to getting on top of your finances is crucial, even if it isn't the most exciting thing to do.

Many Australians live paycheque to paycheque. They spend the majority of their income and then transfer the remainder, if any, into a savings account. These practices make it almost impossible to save effectively or reduce your debts. The simplest way to avoid this trap is by doing the numbers – know how much you have to spend and what you’re spending it on.

Make a list of every bank account, including your loans and credit cards.

Now, make the necessary calls or log onto your online banking portals to get a copy of your statements for the past three months.

If you make a call, you’ll have to request that your bank or credit provider send it to you through the mail, but this could incur a hard copy statement fee which is around $2 per statement. The cheapest way is to log into your account and print it out from there.

To do this, after you’ve logged into your account, go to your transaction history. There should be a button here that says ‘print’. For example, Commonwealth Bank customers can find this button on the bottom right hand corner of their transaction history. Or you might find ‘e-statements’ available to print.

Step 2: Record all your incomings and outgoings by downloading a budgeting tool or app

Once you've gotten your statements together, you'll need a way of recording your weekly, fortnightly or monthly (the choice is yours) income and expenses in one place. This will make it easier for you to get a birdseye view on your financial position.

There are plenty of online and offline budgeting tools out there to help you organise your money - some are automated, some aren't. If they aren't automated you can use your statements to manually put it in your expenditure.

There’s a nifty app called Pocketbook available for anyone with a computer or laptop, or Android and iOS (smart phones and tablets) – you can find this here. It automates and syncs your bank accounts so you can track every dollar you spend in real time.

It also analyses your spending to categorise what you're spending your money on. It won't always get it right, and it does takes sometime to start analysing trends in your spending, so for the purposes of this exercise you might need to help it by looking over it and categorise your expenses manually.

Once you've followed the instructions for setting up your Pocketbook account (you can find this here) and log in, you'll be presented with a list of your recent transactions ordered by date. You can notice from this example that some of the transactions are automatically categorised into sections such as spending money, food etc. There are also a fair number of transactions the app couldn't categorise, so take a few moments to categorise these.

Pocketbook may not suit everyone; so if you’ve found that it isn’t quite suited to your needs, or that it doesn’t offer you the ability to sync accounts from your provider, you can rely on your printed statements or what your bank has provided for you. Banking apps and online portals are also a great way to track your spending, but they may not provide the same "spending limit" feature as Pocketbook.

Be mindful that if you transfer money from your transaction account into another account that you hold, such as savings account, Pocketbook will count that as an expense. So if you regularly transfer money into a high interest savings account or something similar, remember to keep this in mind.

Complete Guide To Pocketbook

Pocketbook may not suit everyone; so if you’ve found that it isn’t quite suited to your needs, or that it doesn’t offer you the ability to sync accounts from your provider, you can rely on your printed statements or what your bank has provided for you. Banking apps and online portals are also a great way to track your spending, but they may not provide the same ‘spending limit’ feature as Pocketbook.

For example, Commonwealth Bank provides a handy spend tracker on its online portal NetBank for its customers to identify their good and bad spending habits. The great thing about this tool is that it’s automatic, so there’s no need to record your expenditures.

Best online budgeting websites

If you’ve gone through the options above and you still haven’t found something you like, then you could use Microsoft Excel, Google+ Spreadsheet, or just using a pen, calculator and paper. Remember to keep all of your documents and handwritten notes in a safe location.

You’ll need to sort your finances out in time periods of weekly, fortnightly and monthly categories like the following;

Income (after tax)WeeklyFortnightlyMonthly
Joint salary
Government benefits
Total income (A)

Regular expensesWeeklyFortnightlyMonthly
Utility bills
Phone bills
Credit repayments
Total regular expenses (B)

Irregular expensesWeeklyFortnightlyMonthly
Car registration/service
School fees
Medical bills
Gifts and presents
Vet bills
Children's activities
Tax (if self employed)
Total irregular expenses (C)

Everyday expensesWeeklyFortnightlyMonthly
Going out
Haircare and bodycare
Total everyday expenses (D)

Then you need calculate your results: income minus all your expenses gives you your 'grand total' or [A - (B+C+D)]. A negative result means you're spending more than you earn and a positive result shows that you're earning more than you're spending - what result did you get?

Step 3: Identify your good and bad spending habits

This step involves identifying where your money actually goes. If you've used an app or other digital method of sorting out your expenses, it's a lot easier to calculate how much you've spent. Let's have a look at the case studies below to see different ways of how you can spot trends in your spending and how you can calculate them.

Case Study 1: Andrew

Case Study

Andrew has a CommBank account, and CommBank has ever so kindly produced this report of his expenditure. He has transferred almost twice the amount out of his account than he did the previous month. Transfers are not necessarily a bad thing as he could have made this transfer to a high interest savings account. However, you can see that he's taken nearly three times as much cash out than the previous month, showing that he's probably been spending more when he goes out—an area in which he can work on to reduce the amount of his outgoing expenditure.

Good spending habits
  • Saved $2172 more than he did last month
  • Kept his bills at the same amount
Bad spending habits
  • Withdrew more cash out compared to last month, which could indicate that he's spending too much when he goes out.
  • The 'everything else' category is quite vague so Andrew will need to break down his spending even further through his CommBank account.

Case Study 2: Andrea

Andrea Budget

Andrea prefers to be a bit old school and likes to handle her finances through Microsoft Excel. Note that if you decide to handwrite all your expenditures it would look similar to this example, except instead of using the calculation functions available on Excel, you'd be putting the numbers into a calculator yourself.

Key Takeaways

Good spending habits
  • No evidence of good spending habits or saving
Bad spending habits
  • You can easily see that Andrea spends most of her money on retail purchases and going out; something that she'll need to change during the upcoming weeks if she wants to improve her finances.

Why budget planning is important

You've now identified your good and bad spending habits. For some, it'll be confronting, especially if you've worked out how your coffee addiction is costing you $50 a week. The main aim is to identify what you're doing well, and what you need to improve. If you're not doing anything well, don't fear. Week two will see you learn more about your debts so you get a broader understanding of what you can and can't afford to do with your money. You'll also be able to set a spending limit for yourself in the next couple of weeks as you begin to understand what types of debt you have.

By the end of this week you should

  • Know where to find your banking statements
  • Be able to document your expenses and savings for the past three months using a budgeting tool, either online or offline
  • Understand your own spending habits and decide whether they are good or bad

Ready to learn more about your debts? Let's go to Week 2!

More guides on Finder

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.

2 Responses

    Default Gravatar
    AngelaMarch 21, 2014

    Hi how do you donate the $9?

      Avatarfinder Customer Care
      MattMarch 24, 2014Staff

      Hi Angela,

      Thanks for your message and we’re glad to hear you are loving Pocketbook!

      To donate, login to the pocketbook site and click on Analyse. You can then donate. Once you have donated contact Pocketbook and they will unlock analyse for you.

      Thanks for your comment!


Go to site