Financial Check-Up

One of my goals for 2013 was to take a look of where "I am leaving points on the table." What does this mean? I feel like I am not optimizing my monthly budget in terms of points. Are there places that I am spending money that I am either 1) no earning points or 2) could be earning more points.

With a limited monthly budget, I need to make sure that every dollar I spend earns me the maximum points possible. To ensure this, the first thing I need to do is figure out where I spend my money. I am sad to write that I don't have a monthly budget or know where I spend my money. That is really bad, I know.

For this reason, I am planning on writing down every dollar I spend in February. From money spent on dining out to the money spent on my dry cleaners, every dollar, every merchant and the reason for the purchase. By detailing every purchase, I will be able to see where I spend my money, but more importantly where I maximize points.

For example, my last dry cleaners gave 1 point per dollar through Thanks Again. However, I moved to Virginia from DC. Maybe there is another dry cleaners that participates close to where I work or live.

Similarly, buying gift cards for grocery stores I frequent, might earn me more points, if bought at office stores than me charging my grocery bills directly to my credit card.

Another benefit of this financial check-up is the ability to learn your maximum limit in regards to credit card spend. Previously, my limit was $5,000 in three months. That was before I started a new job. Could I hit $10,000 now in 4 months? This knowledge will help determine which credit cards I go after in 2013.

Detailing your every purchase can be extremely scary. You might find out that you send $400 a month eating out for lunch only? Or you could learn that you are spending money on things that you don't use ie cell phone insurance? Worse, could you find out that you send more money than you earn? Knowledge is power regardless if it is bad or good. Walking blindly will only result in future missteps or many wrong trips taken.

Will you join me in the February Financial Check-Up?