Manage your money.
Monthly money review: a ten-minute check-in that sticks
A monthly money review in ten minutes: the facts to look at, three questions to answer, a simple score to track, and how to test a big decision first.
Most people look at their money in two moods: when something has gone wrong, and in January. Neither is a good time to think clearly. A short monthly money review replaces both with a calm, regular look, before small drifts become big problems.
It does not need a spreadsheet afternoon. With a plan already in place, ten minutes a month is enough: look back at the facts, answer three questions, and leave with one to three things to do.
Why monthly is the right rhythm
Weekly is too often for most money decisions; the numbers barely move. Yearly is too late; by the time you notice, eleven months have gone. Monthly matches how money actually moves: salaries, rent and most bills run on a monthly cycle.
A monthly review also catches things that hide in daily life: a subscription that started after a free trial, a category that has been a little over for three months in a row, a goal that has quietly fallen behind.
How to do a monthly money review in ten minutes
1. Record the month (two to three minutes)
For each budget line, type what it actually came to. Groceries were planned at $820 and came to $868; the salary came in as planned. If your budget runs on a yearly plan, this is the only typing the month needs. Our guide to planning a yearly budget explains the setup.
2. Read the facts (two minutes)
Look back before you look ahead. The facts worth seeing:
- what came in and what went out,
- the categories that ran over plan, and by how much,
- subscriptions added or cancelled,
- debts paid down,
- goals on track or behind,
- if you invest, the portfolio against its targets.
3. Answer the questions (three minutes)
Start with two quick ones: What went well? and What was hard? Then the three that lead to decisions:
- What will I do this month?
- Is the trend enough for my goals?
- What will I cut?
4. Write one to three actions (two minutes)
Each decision becomes a specific action, tied to the thing it is about. At the next review, you start by looking at last month’s actions.
A simple money score to track progress
A single score will never capture your whole financial life, but it is a useful way to see direction month to month. Here is one built from seven plain rules, each worth a set number of points:
| Rule | What it looks at | Points |
|---|---|---|
| Saving | How much of your income you kept | 20 |
| Spending against plan | Whether spending stayed within the plan | 20 |
| Emergency cushion | Months of essentials your savings cover | 20 |
| Debt load | Debt payments against income | 15 |
| Net worth | Change over three months | 10 |
| Subscriptions | Their share of income, and any you do not use | 5 |
| Goals | How many are on track | 10 |
A rule with nothing to judge yet, for example no debts recorded, stays out of the score instead of counting as zero.
An example month: you kept 14% of income (14 of 20), spent 96% of plan (20), savings cover 2.4 months (8), debt takes 10% of income (15), net worth went up (10), one subscription is unused (3), and two of three goals are on track (7). That adds up to 77 out of 100.
The useful part is not the number. It is the rule that lost the most points, because that is usually the next thing to work on. Here it is the emergency cushion, which our guide to emergency funds and the savings rate covers.
What if: test a decision before you make it
Some decisions deserve more than a monthly look: a new car payment, a pay cut, a move. Before you commit, put the change on top of your plan, without changing the plan, and compare the two.
Four kinds of change cover most cases:
- income up or down by a percent, from a month,
- everyday spending up or down by a percent,
- a new monthly cost from a month on,
- a one-time cost in a month.
Example. What if income drops 10% from January and you take a $450 car payment from March? The monthly left-over goes from +$210 to −$480, and the lowest point of your account moves to August. You find the $480 before you sign, not after.
If you like the result, apply it to the plan. If not, clear it and nothing is left behind.
Common mistakes with a monthly review
- Turning it into a judgement. The review is information, not a grade on you as a person. A month over plan is a fact to act on.
- Too many actions. Ten resolutions become none. One to three, specific and small.
- Skipping the month after a bad one. That is the month the review helps most.
- Only looking back. The questions about this month and your goals are the point.
How Money Kit helps with your monthly review
In Money Kit, the monthly review gathers the facts from every module you use: income and spending, categories over plan, subscriptions, debts, goals, and if they are on, the portfolio and the retirement outlook. You answer the questions, and each decision goes on your action list, linked to what it is about; cancel a linked subscription and its action ticks itself off. The money coach scores each month out of 100 with the seven rules above, says what would move the score most, and shows the last twelve months. The what-if shows a change against your plan before you apply it. All of it is worked out in the file from your own numbers, and none of it is investment advice.
Questions
How long should a monthly money review take?
About ten minutes once the plan is set up. Two or three minutes to record what each line came to, a couple to read what changed, a few to answer three questions, and the rest to write one to three actions.
What should I look at in a monthly budget review?
What came in and went out, the categories that ran over, subscriptions added or cancelled, debts paid down, and whether your goals are on track. Then decide what you will do, whether the trend is enough, and what you will cut.
How do I test a big money decision before making it?
Put the change on top of your plan without changing the plan: an income drop, a new monthly payment, a one-time cost. Look at what is left over each month and the lowest point of your account before you commit.