Do You Know Where Your Money Is Going?_Kristie Lorette
Have you ever looked at your bank account a few days after your paycheck was deposited and wondered, where the heck did all my money go? Of course, you know you have bills to pay, but could it really be that empty in just a few days? The key to finding out where your money is going is to track your spending. To get started, here are three top tips to keep track of your expenses, so you can evaluate ways to save money and keep your hard-earned cash in your bank account a little bit longer.
Spending Journal
The key to tracking your spending is to record every expense and purchase you make. It’s the only true way to determine where your money is going. One of the easiest ways to do this is the old fashioned way: with a pad of paper and a pen. Put a small notebook in your purse or carry a small notepad with you everywhere. Write down every purchase you make—no matter how big or small. At the end of a week or month, you can quickly review the list to identify areas where you may be able to cut back on spending.
Smart phones now have a “notes” options you can use to track spending or you can even download a budget planner app. You can also use a free online budget planner to help you track spending. Some of these programs allow you to import bank account information and data from your credit report so you don’t have to enter everything manually. There is often th option to run spending reports as well, or produce charts and graphs on the fly to evaluate where you’re spending your money.
Receipt Categories
Whether you pay cash, or use a debit or credit card, ask for a receipt for all of your purchases. From the coffee shop to the toll booth, you should be able to gather receipts for anything you spend money on. If not, create your own receipt out of slip of paper. Fill an envelope or file folder with these receipts, or create a separate envelope or folder for each of your expense categories. At the end of the week or month, review your receipts to evaluate where your money is really going.
The bottom line: putting your purchases in black and white creates a record. Once you have a spending record, you have the information you need to determine what happens to all of that cash after it hits your bank account.
These records also allow you to identify areas where you are spending too much money. Only when you aware of where the spending problems are can you cut back on those expenses. Whether it’s a piece of paper and a pencil or online budget planner software, find a way to track your spending so you can do something about leaving more of your money in the bank—and for longer periods of time.
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Reference :
- http://www.quizzle.com/blog/2011/04/do-you-know-where-your-money-is-going/
