Summary5 min read

Podcast Summary: Optimal Finance Daily

Episode 3557: [Part 2] How to Complete Your Very First Spending Audit by Amanda Brownlow
Host: Diania Merriam
Date: May 12, 2026

Episode Overview

This episode continues the step-by-step guide on performing your first spending audit, based on Amanda Brownlow’s advice from Hello Brownlow. Diania Merriam narrates Amanda’s actionable steps and peppered the episode with motivational wisdom, emphasizing mindful money management and budget consistency. The episode is filled with practical tools for listeners wanting a clearer view of their finances, helping them set attainable goals and stick with their budgeting journey.

Key Discussion Points & Insights

1. Categorizing & Reviewing Everyday Spending

[00:52]

Amanda instructs listeners to break down all transactions into specific categories, such as Groceries, Eating Out, Shopping, Gas, and Home.
She suggests reading through every transaction and sorting them accordingly, even expanding or creating new categories if needed:
- “You need to know exactly what you spend money on when you're doing this spending audit.” (Amanda, 00:55)
Writing the store name or type of purchase next to the amount can illuminate spending habits and highlight which merchants claim most of your money.

2. Dealing with Cash Transactions

[01:35]

For those who use cash (such as with the envelope system), Amanda emphasizes tracking:
- “You need to have a concrete idea of where your money went. Total up all the transactions just like you did in number five.” (Amanda, 02:18)
If receipts are missing, she encourages guessing conservatively and vowing to be a ‘receipt saving hero’ next month.

3. Summing Up and Facing the Numbers

[02:29]

After sorting expenses, it's time to total everything:
- “First, make totals from income, debt, bills, everyday spending, and the amount put into savings... Income minus expenses. What does that number come out to be? Are you spending more than you're earning?” (Amanda, 02:56)
This is framed as the “moment of truth” for personal finances.

4. Emotional Reactions & Goal Setting

[03:30]

Amanda normalizes any emotional response upon seeing the summed totals—be it anger, sadness, or disappointment:
- “It's okay to feel a range of emotions when looking at the cold, hard numbers. But don't fight about it. Push through it. Don't think for a second about giving up.” (Amanda, 03:31)
She urges listeners to identify their main problem area—overspending, debt, lack of savings—and to set specific, actionable, time-bound goals to address it.
Offers sample goals and references Dave Ramsey’s books for further reading.
- Memorable quote: “Set a goal amount, what actions you'll take to get there, and a deadline. But remember, don't beat yourself up.” (Amanda, 05:00)

5. Making Cuts & Honest Assessments

[05:18]

Amanda shares a personal anecdote of cutting back on excessive shopping and eating out as a family, saying:
- “When we reduced those areas of our budget or eliminated them completely, we saved close to $400. Crazy. And that's just a fraction of what we used to spend before we made a budget.” (Amanda, 05:39)

6. Crafting the Next Month’s Budget

[06:07]

Use audit data to build a realistic budget, considering granular categories and irregular expenses like taxes or insurance.
“It's all about seeing where your money goes and keeping track of it. Don't be afraid to adjust as you need to.” (Amanda, 06:30)

7. The Importance of Consistency

[06:47]

Budgeting is compared to athletic mastery:
- “Simone Biles didn't become amazing in one month. You won't become an amazing superstar budgeter in one month. And that's okay.” (Amanda, 06:47)
Amanda advocates for ongoing adjustments and discussion with a partner, emphasizing progress over perfection.

8. Diania Merriam’s Personal Reflection

[09:35]

Diania highlights budgeting as “telling your money where to go versus wondering where it went,” emphasizing awareness as the bedrock of financial health.
She advocates reassessing spending at least once or twice a month and using tools/apps to facilitate real-time tracking.
- “For me, the simple act of tracking my spending during each transaction made me much more thoughtful during the key inflection point when I was about to swipe my credit card. I got myself into debt over mindless spending. So if you're like me, try bringing some awareness into the equation and see how it affects your purchasing behaviors.” (Diania, 09:50)

Notable Quotes & Memorable Moments

“You need to be a receipt saving hero next month.” (Amanda, 02:26)
“Set a goal amount, what actions you'll take to get there, and a deadline. But remember, don't beat yourself up.” (Amanda, 05:00)
“When we reduced those areas of our budget or eliminated them completely, we saved close to $400. Crazy.” (Amanda, 05:39)
“Simone Biles didn't become amazing in one month. You won't become an amazing superstar budgeter in one month. And that's okay.” (Amanda, 06:47)
“A budget is just the simple act of telling your money where to go versus wondering where it went.” (Diania, 09:35)
“Try bringing some awareness into the equation and see how it affects your purchasing behaviors.” (Diania, 09:55)

Key Timestamps

[00:52] – Step 5: Categorizing transactions
[01:35] – Step 5.5: Handling cash spending
[02:29] – Step 6: Adding up totals
[03:30] – Step 7: Reflecting and setting goals
[05:18] – Step 8: Making budget cuts
[06:07] – Step 9: Building your next budget
[06:47] – Step 10: Sticking with it over time
[09:35] – Diania’s summary on budgeting as an act of awareness

Summary

This episode is a practical, empathetic guide for anyone performing their first spending audit. Listeners are coached through categorizing expenditures, facing financial truths, setting goals, making honest cuts, and sticking to the budgeting process—even when it isn’t perfect. Diania and Amanda stress the importance of regular review, adjustment, and self-compassion, leaving listeners empowered to take action on their journey to financial independence.

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Transcript16 lines

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This is optimal Finance Daily how to complete your very first spending audit part two by Amanda Brownlow of hellobrownlow.com number five review your everyday spending. Now for the fun part. Joking. Get a clean sheet of paper or a new page in your spreadsheet. Make several categories at the top Groceries, Eating out, Shopping, Gas and home. Now read through each and every transaction and put it into the categories you made. If you need to expand categories or make new ones, that's totally cool. You need to know exactly what you spend money on when you're doing this spending audit. It may be helpful to write down the store name or what the item was next to the amount. It isn't necessary, but it can help you see what stores you spend the most money at. Number 5.5 cash only exceptions we used the cash envelope system for a long while. The key is that you one had a set and limited amount of money in a category each month and two you kept track of transactions on a ledger. If you are without a budget, you may not know how much cash you're spending. Check your bank statements for ATM withdrawals, teller withdrawals and check deposits where you may have received cash back. Most banks have a deposit slip available for viewing in online banking. If you don't have a bank account, which you need to set up one asap. Review your paychecks. Do you have any of that money left in your wallet? Another way to get cash is at any store when you use your debit card with your PIN number. If you have receipts, total up the cash back you receive during those visits. Search your purse, car and everywhere in between for any cash transaction receipts. You need to have a concrete idea of where your money went. Total up all the transactions just like you did in number five if you don't have the receipts and aren't quite sure, do your best to guess as to how much money is left in your wallet. You need to be a receipt saving hero next month. Number six Add it all up. Whip out your calculator and total all of your purchases. First, make totals from income, debt, bills, everyday spending, and the amount put into savings accounts or retirement. Second, total everything together. Income minus expenses. What does that number come out to be? Are you spending more than you're earning? Number seven Set goals. Take a long, hard look at those totals. Are you happy with what you see? Unimpressed?
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Angry?
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Sad? It's okay to feel a range of emotions when looking at the cold, hard numbers. But don't fight about it. Push through it. Don't think for a second about giving up. You've come so far already. Let's set goals to make you happier the next time you look at your monthly budget. First, what is your primary problem area? Are you spending more than you make? Are your debt payments too high? Is eating out and grocery shopping out of control? Did shopping become an everyday thing? Are you saving any money? Emergency fund, house, down payment, retirement, etc. Set goals around your problem area and fix it. First, say your debt payments are just too dang much for you to handle. What are those debts? Can you take any immediate action in the next week to reduce them? Maybe it's a crushing payment on your car. Could you trade it in for something you can comfortably afford? Can you work to pay your debts down in the debt snowball fashion, we recommend Dave Ramsey's Total Money Makeover and Complete Guide to Money. Even if you think you don't need any further reading, I really, really think you should give these books a read. Dave gives tackling debt and savings a whole new look. Set a goal to pay off debt and make it actionable. I will pay off my $10,000 of debt in one year by reducing spending in the following areas and putting those savings towards the outstanding debt balance every month. Another example. I'm spending way more than I make and I'm in debt. I'll curb my shopping habits in whatever areas to not go into debt anymore. My goal is to have my $5,000 debt paid in full by November, which is an extra $500 each month paid towards my debt. You get the idea. Set a goal amount, what actions you'll take to get there, and a deadline. But remember, don't beat yourself up. If you just missed the mark on your deadline or overall goal, you can still achieve it. Number eight make cuts. Whatever your goal is, put money into savings, pay off debt, etc. You'll probably need to make cuts of some sort. Be super honest with yourself. Are any of your spending categories cutting into your goals? For my husband and me, it was needless shopping and eating out. I'm a frugal person who loves a bargain, but hot dang, I was still spending a ton of money and eating out. I was a new mom who didn't have the brain power for cooking. That's how I thought of it. But when we reduced those areas of our budget or eliminated them completely, we saved close to $400. Crazy. And that's just a fraction of what we used to spend before we made a budget. 9 make a budget for next month based on your numbers from the spending audit, minus any realistic cuts you can make. Create a budget. Set a basic budget for your first month. If you realize you need a more specific category than kids, maybe it should be daycare, after school activities, swim lessons, etc. Get granular. Don't be afraid to adjust as you need to. It's all about seeing where your money goes and keeping track of it. It's also a great practice to add and align for yearly bimonthly or other occasional bills like property taxes, insurance, etc. And number 10, stick with it. Practice makes perfect. Simone Biles didn't become amazing in one month. You won't become an amazing superstar budgeter in one month. And that's okay. I wasn't either. And my budget still gets a tweak here and there. It's life. Don't be scared of adjustments you need to make in your budget. Maybe you weren't realistic about setting a low grocery budget this month and way overspent. Talk about it with your partner and find support in them. Adjust your budget and do better next month. Month after month of sticking to a budget, you'll see that your goals are achievable. You're saving more money than you had previously. You find that you're relaxed when you think about money, not stressed out. You just listened to part two of the post titled how to Complete youe First Yearly Spending Audit by Amanda brownlow of hello, brownlow.com Summer's almost here and
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Remember, a budget is just the simple act of telling your money where to go versus wondering where it went. It's an exercise in awareness over your money that contributes to the mindful management of your hard earned dollars. I think it's pretty difficult to improve your finances until you have a crystal clear picture of what's going on now. And that's where the tracking of your spending comes in. Then you play with some assumptions on where adjustments can be made, test those assumptions and reassess. A budget allows you to do this, but it only really helps you if you continually engage with it. This means once or twice a month you're assessing your actual spending against what you've budgeted. Or you can use apps like youe need a budget where you can do this in real time as you're spending money. By continually engaging with your budget, you'll be able to see where you need to make adjustments or where you were being unrealistic about desired spending versus actual spending. For me, the simple act of tracking my spending during each transaction made me much more thoughtful during the key inflection point when I was about to swipe my credit card. I got myself into debt over mindless spending. So if you're like me. Try bringing some awareness into the equation you and see how it affects your purchasing behaviors. But that's going to do it for today. Thanks so much for tuning in and listening to both parts of this post and I'll see you tomorrow for more. Optimal Finance Daily where your optimal life awaits.