Know Your Numbers
Get clear on your income, spending and what you can actually save
TL;DR - Know Your Numbers 📋
You can’t improve what you don’t measure
Understanding your income and outgoings is the foundation of good money management
Separating essentials, sinking funds and lifestyle spending brings clarity
Once you know your numbers, saving becomes much more realistic
Use a simple system (like the Track & Win toolkit) to stay on top of it
Why Knowing Your Numbers Matters 🧮
Most people have a rough idea of what they earn and what they spend — but a “rough idea” is usually not accurate enough. Without clear numbers it’s easy to:
Overestimate how much you can save
Underestimate where your money is going
Feel constantly tight with money even when your income is decent
Therefore, getting honest with your numbers removes the guesswork and gives you control.
The Key Numbers to Track 📊
These are the key numbers to track when it comes to getting to know your numbers - these are also explained in the Track & Win toolkit.
Money In 💰
This is all of your income after tax, i.e. "take-home pay", including:
Main salary
Side income / freelance work
Benefits or other regular income
Dividends from stocks
Essential Outgoings 🏠
These are the baseline costs that you need to cover in order to live and typically include:
Rent or mortgage
Utilities (gas, electric, water)
Council tax
Insurance (car, home, life, etc.)
Food / groceries
Transport / fuel
Minimum debt repayments
Phone & internet
Sinking Funds or Irregular Costs 📅
These are expenses that don’t typically happen every month but are still predictable and can be accounted for, such as:
Car servicing & MOT
Holidays
Christmas / birthdays
Clothing
Dental / optical
Home maintenance
Lifestyle Spending 🎉
This is the fun part and is typically the most flexible part of your budget, including things such as:
Eating out & takeaways
Subscriptions
Entertainment
Hobbies
Shopping
Debts 💳
List out what you owe and the minimum payments on those debts from credit cards, loans, car finance, etc..
Assets 🏡
Assets are things you own that have value such as savings, investments, pension, property equity, etc. These typically increase in value over time.
A Simple Way to Organise It 🗂️
At least once a month (or every payday), review:
Total Money In
Total Essentials
Total Sinking Funds
What’s left after 1-3 have been calculated is your true capacity to save or put toward goals
Common Mistakes ⚠️
Whilst you're going through the process of knowing your numbers, be careful not to do the following common mistakes:
Forgetting irregular expenses (then wondering why you have no money in December)
Mixing essential and lifestyle spending together - these are not the same thing, even if you wish they would be!
Only looking at your bank balance instead of the full picture - are there other accounts you have?
Being overly optimistic about how much you “should” be able to save - the numbers will reveal all.
Action Steps ✅
Now you have a bit more armoury into knowing your numbers, here's your homework:
Gather your last 1–2 months of bank statements via your banking app.
Split your spending into Essentials, Sinking Funds and Lifestyle.
Write down your total take-home income.
Calculate what’s realistically left after essentials and sinking funds.
Download the free Track & Win Toolkit below to make this easier and keep it updated.
Review your numbers once a month and remember, small adjustments compound over time!
You don't need to be a spreadsheet nerd to know your numbers but you do need to understand where your money is going to get control of your finances and build a picture of your own financial landscape - you've got this!
