The January audit that could save you thousands

Every January, I sit down with our Amex statements and do something most people avoid: I look at where our money actually went. Not where I think it went. Not where I hoped it went. Where it actually went.

This year, the numbers told a story I didn’t love. But that’s exactly why this exercise matters.

Money Matters

There are only two ways to improve your family’s financial position: earn more or spend less. Most people focus entirely on the first one and completely ignore the second. That’s a mistake.

Here’s the reality: your expenses are probably creeping up without you noticing. It happens slowly. A new subscription here, a lifestyle upgrade there, a few months of “we deserve this” spending. Before you know it, you’re hemorrhaging cash and can’t figure out why you feel broke despite making good money.

The fix is simple but uncomfortable: you have to look at the actual numbers.

I keep a spreadsheet tracking our monthly spending going back five years. I know our average monthly spend, our year-over-year trend, and our three-year trailing average. This kind of data tells you things your gut never will. It told us we were on pace for a great year until Q4, when holiday spending blew through everything we’d saved in the first nine months.

The numbers also revealed something two years ago that changed how we operate: we were spending an insane amount on groceries. Instacart convenience fees, Publix prices, food rotting in the fridge because we weren’t meal planning. Once we saw the actual dollar amount, switching to weekly Aldi runs became an obvious decision. We’ve saved thousands since then.

Your finances have leaks. The only question is whether you’re willing to find them.

Action Steps

Here’s the exact process I use for a January audit:

Step 1: Consolidate everything into one view. Pull every credit card statement and bank statement from the past 12 months. If you use one card for most purchases like we do, this is easier. The number you’re looking for on credit card statements is “new charges this month.” Add up all cards to get your true monthly spend. Put these numbers in a simple spreadsheet, month by month.