What is the 7-Day Challenge?
Essentially, the 7-Day Challenge is a personal finance exercise that you can go through where you will religiously track each and every purchase you make for a 7 day period.
The idea is that after you have kept track of your purchases for 7 days, you will then have a good idea about certain areas where you are either 1) spending excessively or 2) can identify as the Latte Factor previously discussed.
My Personal Finance Journey 7-Day Challenge
In his book, David pretty much ends his description of the financial challenge there. However, I feel that several minor modifications can be made to make it a more worthwhile experience.
Since corny phrases are very catchy, we will coin the modified exercise the My Personal Finance 7-Day Challenge.
Steps to complete the Challenge
To move through this exercise, just follow the easy steps outlined below:
- For 7 days, record each and every purchase you make in the Google Docs spreadsheet I put together at the link below. Do not change your spending habits just because you are doing this exercise.
- To obtain a copy that you can edit and use to track your own spending, simply save the document as an Excel file on your computer.
- In the spreadsheet above, there are 6 categories to place each purchase under. Please feel free to adapt these categories as you see fit for your specific situation.
- The spreadsheet will automatically generate 1) the total amount you spent during the period and 2) the pie chart and % breakdown of where you spent your money.
- Once you have your pie chart generated, take an in-depth look your spending. Look for patterns and areas where you may be spending too much. Listed below are some questions to help get you thinking.
- Do you spend 70% of your money on food? How can that be reduced?
- Are you spending too much going out to eat?
- Are your tabs at the bar costing you $500 per week?
Once you have gone through your results, post a comment and let me know how it goes!
What categories were you spending too much in? Did you find your Latte Factor? Do you know any one else who falls in to these habits of spending?
My Personal Finance Journey
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