Friday, August 19, 2016
Budgeting 101: Day 5
Today I am going to challenge you to do something you may not have ever done before. I am challenging YOU to write down everything you spend for 1 full week.
So how do you go about this? Keep a log on your phone. Most have a notes app. Keep track and write down the amount, where you spent it and how you spent it (cash, credit, debit). This may sound super easy. But it may not be. Especially if you have automatic payments set up out of your accounts - make sure you include those.
While it may sound like a silly challenge, I have a reason.
It's kind of amazing how small amounts can add up and how quickly you can spend money without even thinking about it. Here's a sample log:
By keeping track of 1 weeks worth of expenses you will have a better understanding of where you are spending your funds. You will see where you can cut back and what habits you may need to think about breaking if you are having a hard time saving money and that's a financial goal you've set. Tracking expenses will help you to know where your money is going.
If you have any questions head on over to creditsavvydiva.com and I have some resources there that will be able to help you get started. If your phone doesn't have the notes app just track using paper and pen, but make sure you are definitely keeping track somehow (when I tracked my expenses for this exercise I kept all my receipts and then just double checked the amounts I had written down.
I hope this helps you and I look forward to hearing how you are doing. See you Monday where we will talk about methods you can use to help break poor habits.