How I Track My Money - The System That's Making Me A Millionaire

0:00 3-Step System To Track Your Money
1:18 How To Track Your Spending
2:31 Consolidate Your Spending Into One Spreadsheet
03:36 Categorise Your Spending
06:58 Analyse Your Spending
09:39 InvestEngine
11:09 Increase Your Income
13:21 Calculate Your Net Worth
17:22 Take Action Now!

Excel formula mentioned in the video:
=SUMIF(F:F,”Bank Fees”,D:D)

This is the system I use to track my money – it helps me to spend less each month, drive up my earnings and invest so that my money works for me. I’ve developed this 3-step process using personal finance advice from books like the Psychology of Money and Rich Dad, Poor Dad, and it has increased my net worth by over £100,000 in the last year.

To break it down, step 1 is a once-a-year review of all of my spending – yes, all of it! It’s the only way to reduce “low-output” spending (i.e., spending on stuff that doesn’t give you high satisfaction for the money you’re spending on it) so that you can spend more on the stuff that matters and save more of your income each month. Step 2 is then to increase your income – this is the one I think most people just don’t think about, and I guarantee you literally anyone can follow this part of the system to earn more. Then, the final step is to calculate your net worth to analyse whether you should be paying off more of your debt, investing more, diversifying your investments or changing your financial habits altogether.

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About Me

I'm a lawyer, part-time YouTuber, son, brother, startup founder, fiancé, black coffee drinker and plant dad. I graduated from Cambridge University (where I studied French and Spanish), topped my law school class and now work for a corporate law firm in London as a trainee solicitor (which takes up a lot of my time)!

Around that, I'm a big fan of discovering new ways of thinking, of balancing work with life, and of performing to the very best of my ability. Ohh, and being happy. And I try to share all that on this YouTube channel 😀

Fun fact: I believe we massively overplay the role of “natural talent” 😮 AND… I also believe that TOGETHER, WE ARE ALL CAPABLE OF POSITIVITY, PRODUCTIVITY AND SUCCESS.

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Disclaimer:
Information, views and opinions depicted in this video are my own. Information visible on screens or in documents does not relate to my work as a lawyer for clients. This is not financial advice.

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Thanks so much to InvestEngine for sponsoring this video 🫶

[SirHargreeves]

I do the same thing. I have a spreadsheet dashboard that tracks my finances and every year (for the past 10 years) I’ve recorded the number. I started with £644 in 2014. It’s now £100, 000+

[DaleClaassen]

4:37 - Easier to copy the list of descriptions in the category column and paste as values, remove duplicates in the data header and use 'SUMIFS', =SUMIFS(D:D, F:F, $I2). Way easier and less manual work. Or create a pivot table

[sbIvanov]

It is easier to use a pivot table and see the sum of all your expenses than to try and create complicated calculations.
Also, you should add subcategories ie. Essential -> Sub-category Food. That way you can pivot your table on the category and then if needed break down everything into a sub-category and see where you over/under spent!

[Great_PatBingsoo]

This is pointless when you can just pay a few dollars a month to easily see your spending across your accounts. This is way too time-consuming for the average bloke.

[S-Hatami]

This is amazing and seems a worthwhile effort. However, as a lawyer from across the pond, the expenditures are striking between the two comparative markets (London vs NYC/Philly suburb). Our mortgage, obtained when rates were low, is $2500 and includes insurance and property tax; 2 bedroom rentals are $2100 per month at a minimum (plus electric (200+), gas (40), water (50), sewer (30), trash pickup (20), lawn or maintenance service(50)). Food expenses are significantly higher, for groceries and take out (you have several different food categories, but based on the total of non essentials, that amount would cover lunch out at work for the month. Forget pizza night!). Mobile is $100-200 a month; TV/internet/subscriptions around $250 monthly. And at $50, you could only get your hair cut three times a year! A man's cut is $20 with tip. I know the pound has more purchasing power, but wow! Also, very impressed with your low spending on "goods." Any Americans have ideas on cutting expenses?

[MrCem]

I used to do a complete financial analysis every quarter, categorized everything, balanced my check book bi-weekly, etc. I spent hours knowing exactly where every penny of my $$ was coming from & where it was going (expenses by category, savings, investments). Then one day I realized that I knew w/i $2-$5 range the numbers that mattered most without this effort. So, now I save that time waste doing other things & enjoying life w/o worry.

[toomsy]

The legend is back. Thank you for pushing me to go and apply for vacation schemes when they open in September any tips on them especially for clifford chance would be amazing ❤

[jamesgardner]

Hi Liam, interested to know if you use credit cards for your day to day spending to take advantage of bonuses/points or whether all of the spending shown in the video is using debit cards? Or what your general view on this is. Thanks

[maikuljay]

Legend, thanks for the excel tips - that actually has really helped me.

[SootheSound]

Another great video, thank you. Is there any chance you could consider a video, or a Q&A video regarding what someone aspiring to a corporate law degree should be looking for: A levels, Duke of Edinburgh, good uni's that firms look for, the need dor internships etc ?

[torben-schmidt]

Thanx for your videos. Have just began watching your channel and I already loving it. Keep up your good works and have a nice summer

[chandrus]

This is a really good vid and very clear for anyone to follow and still has lot of takeaways for people who have control on finances. Great work Liam!

[bradwilson]

You could just do a pivot table and it would work this out for you after you do your category’s

[tkerby]

Did you categorise everything manually, Liam? I use Monzo and you can preset categories on the app, and then when you export it, it's all done for you :D

[dougyt]

This is great, but a budgeting app like Emma would save time and do a lot more than this.

[NitinAndrews]

Want an updated what’s on my iPhone video

[Tee_P]

Could you do an updated morning routine?

[sarahcraig]

Can you please do a video on paying off your student loan plan 2, I'm a high earner and I know that it is the right thing at 8% interest compounding monthly but I can't bring myself to start paying it down as everyone tells you not to. This is due to it wiping in 30 years, the govt can change the terms at any point and it's income contingent. Trouble is I'm looking at paying £100k for my degree, if I start paying it down early it will cost £66k. Both options aren't great but it would be good to hear your thoughts as I know you've started to pay yours down. Thank you so much x

[timeacseh]

Hogyan lehet magyar feliratot beállítani? Köszönöm szépen!

[georgeholmes]

Great video - thnx

Excel wise, you can highlight the entire row, copy it, then go on data tab and remove duplicates, you will have a condensed list. Can then simplifying/speed up the sumif: change =SUMIF(F:F, ”Bank Fees”, D:D) to =SUMIF(F:F, I3, D:D) and drag it down. Could also insert a pivot table.

How do you categorise stuff that you have no idea what it is (i.e. random shop in a different city 9 months ago)? Aldi etc is easy but there are some random descriptions about like "izettle"

Also be interested on your views on student loan for average salary graduates. Clearly makes sense for you to chip away at yours as you will pay it off anyway and save on the interest