Tracking Your Spending Habits
April 16th, 2014 | Comment
Tracking your spending habits may seem like a daunting task. However, it is the first step in knowing where and how much you are spending daily, weekly and monthly. I challenge you to experiment for a week. You will be surprised on what and how much you spend your money. It is important to track every purchase even the small ones such as a pack of gum.
Here are 3 simple steps to follow:
1. Save it. Keep your receipts. They will help you remember what you purchased from day to day. They will be useful references when tracking your purchases. Place the receipts into a folder, envelope or shoebox.
2. Track it. Write down your purchases in a journal or log. Do not include your fixed expenses such as rent. If you prefer, input your expenses into a spreadsheet or online worksheet. Try Wells Fargo’s My Money Journal as a guide. Create your own using Excel.
3. Calculate it. You want to review what you have spent each day. It is important to calculate your expenses. Total your expenditures at the end of each day and week for a 7-day total.
What next? Come back next week for budgeting tips.
Category: Professional Development