Track Your Money for 30 days
Have you ever gotten to the end of the month and wondered, where did all my money go? Sure this happens to all of us once in a while, but if happens regularly, then it is time to take a look at where all your money is actually going.
You know how much your fixed expenses are each month since those amounts do not change. Your rent or your mortgage stays the same as does your car payment. Groceries, utilities, clothing, car repairs, and miscellaneous items can vary significantly from month to month.
The best way to find out where your money is going is to track every penny for 30 days. Buy a small notebook and write down what you spend every time you pay with cash, check or credit. Once you write it down you will be able to see where you money is going.
When you stop and get gas, is that all you buy? Or do you buy coffee, lunch, soda pop, an energy drink, or lottery tickets. Write down in your notebook what you spend on gas and separate out the food and other items. Do you order pizza when you are tired, eat lunch out during the week, and go out for dinner on the weekend?
Jason had a good job. Yet at the end of the month he always seemed to be a few dollars short of making his truck payment. He had no idea where his money was going so he decided to track his money. Every morning he would stop at the gas station and buy coffee and a pastry. He spent $5.00 at the gas station. This added up to $25 a week or $100 a month.
Once Jason realized where his money was going he purchased a box of pastries each week at the grocery store for $4. This amounted to $16 a month rather than $100 a month. Jason still had coffee and a pastry for breakfast. He didn’t make any sacrifices. He just changed how he paid for his breakfast. At the end of the month Jason had $84 more dollars left in his account and he always had enough money to make his full truck payment.
Track your expenses for month. Is your money going where you want it to? Or like Jason, with a few minor changes would you be farther ahead.