Want to get a better handle on your finances? Do you want to pay off some debts and increase your savings? You can take control of your money by tracking your spending. You can’t improve your finances, make a budget or make necessary changes until you have a clear picture of how much you are spending each month and where your money is going. Track your spending to take control of your money.
Get a clear picture
To get a clear, accurate picture of your monthly expenses, you need to track all of your expenses for a month. All expenses. Every. little. purchase. It can be a tedious, daunting endeavor, but tracking everything you purchase provides you with the best picture of your daily, weekly, and monthly spending habits.
Identify Trends
By understanding exactly what you are purchasing each month, you can determine what daily routines and habits are negatively impacting your finances. Once you identify those expensive, unnecessary purchases caused by routine behaviors, you will be able to change or eliminate those behaviors and routines to improve your cash flow.
FINDING YOUR FREE TIME!
Make the most of your daily 15-minute downtime gaps and create free time for the things you love! Get your FREE copy today!
Daily routines such as purchasing a $6 coffee every morning or spending $10 on lunch each day, add up to real savings each week. Instead of buying a $10 salad each day for lunch, spend $10-$15 dollars and make your own salads at home. Based on the $10 lunch example, that small behavior change could save you between $35-$40 a week, or $140-$160 a month. That savings could help pay a utility bill or pay extra on a credit card balance.
So, how do you track your expenses and take control of your finances?
- Track your expenses for a month. You can download the spending tracker template above. Print out as many copies as you need to track every expense for the month.
- Document the date you purchased the item. Watch for trends in spending on certain days, certain times, etc. Do you always buy your lunch on Mondays because you are in a rush on Monday mornings and run out of time to pack a lunch? If so, maybe create a routine to meal prep on Sunday afternoons and eliminate the need to buy your lunch on Mondays.
- List the exact expense on the tracker. At the end of the month, look for patterns in purchases. Do you purchase a coffee each morning? Do you order take out on certain evenings each week? Identify those trends and brainstorm ways to eliminate those purchases by changing up your routine.
- Track your exact spend. It helps to see just how much you are actually spending each month on particular items. You can even add up the amount spent by expense type, like add up all of your coffees, take-out meals, or in my case…Diet Cokes!
- Determine whether the purchase was a want or need. At the end of the month, review all the items you listed as a “want”. Set a goal to eliminate at least some of those “want” purchases for the next month.
- Take baby steps. In order for change to be effective, you need to take it slow. Don’t try to drastically cut everything out of your life all at once. Don’t stop buying your daily coffee. Try reducing your coffee purchases to every other day for the first month. Make your changes become part of your daily habits and routines. Slow and steady will improve your chances for long-term success.
Changes that stick
Make your changes become part of your daily habits and routines. Don’t try to make drastic changes all at once. Gradual changes in your purchasing behaviors will improve your chances for long-term success. Start the process of taking control of your finances by tracking your monthly expenses, identifying spending trends and then gradually eliminating unnecessary expenditures. Track your spending to take control of your money.
POWER Pockets™ provide the perfect opportunity to help you monitor your finances and pay your bills. Wanna learn more about how to get things done and take back your time? Download the FREE guide below!
