Do you know how much you spend each month? Does it seem like your paycheck barely lasts you two weeks? Or are you still in the black at the end of each pay period? Unless you keep impeccable records, your money might be slipping through your fingers before you get to save any.
Here’s a challenge: When you get your next paycheck, add it to whatever is left in your checking account. Then make a commitment to yourself to write down every purchase you make and every bill you pay for the next pay period. That means even subtracting trips to the vending machine at work and your most recent music download. At the end of your pay period, categorize the types of purchases you make and total up the columns. You might find that you spent $30 on visits to the coffee shop. Or that going out to lunch several times a week is costing you $25. You may also find that your spending is in control and you are doing a good job keeping track of your money.
Regardless of what you find out, what this exercise shows you is how and where you spend your money, and how easy it is to lose track of your spending. From this you can also determine your spending priorities. Maybe you’ll find that if you cut your lunchtime spending in half, you would find it easier to pay your cable bill each month. Or you can re-allocate a spending category so that you can start saving for a vacation.
If you think that writing down all of your purchases, even the ones made with cash, is too tedious for your lifestyle, consider this: Tracking your spending is now easier than ever. Most banks offer online services with which you can see the transactions made with your debit card. And you should be able to do the same with your credit card purchases. This easy way to monitor your spending can help you save a great deal of money and reach your financial goals by calling attention to your spending habits.
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