Hi, I missed last week's tip, sorry about that, I was under the weather - but this one I'll post early for you.
This week's tip is to "Log It". For just 30 days, keep a small notebook with you, or use your phone's notepad and jot down every penny you spend. It's only for 30 days. You can go back at the end of the month, or do it at the end of every day, and assign a category for each transaction. Here's a few to help you get started:
Entertainment - this could be movie tickets, cover charge, out with friends, etc.
Food - this could be anything from your grocery store receipts to eating out to your drive-thru coffee.
Work - this could be dry cleaning for your work clothes, supplies needed to do your job, travel expenses you paid for, tips as you travel, taxis, etc.
Gas - all the gas you put into your vehicles.
Home - this could be repairs, paint, tools to fix something, linens, dishes, furniture, anything.
Auto - this could be anything you paid besides gas in the tank, like repairs, maintenance, insurance, registration renewals, etc.
Mortgage or Rent - self-explanatory
Medical/Dental - any bills paid, co-pays for visits, xrays, insurance premiums, etc.
Insurance - you can group all together or separate them out, your choice. There's usually health, dental, vision, auto, mortgage or renter's insurance, life insurance, etc.
Clubs/Organizations - dues, materials needed, equipment, etc.
Education - classes, loan bills paid for college, books, seminars, lectures, audio or visual material, etc.
Savings
This should give you some ideas to get started.
So why log it?
At the end of the month, total all the categories and money spent. You may find the percentage you're spending in a particular category may be too much (or too little, as in savings and insurances). If you can realize where money may be "leaking" from your income you can take better control of it, and put it to better use. I did this with one friend and she didn't realize that her take out food and drive thru coffees, coupled with her impulse shopping, totaled more than her car payment! She decided to set a budgeted amount aside for them every month (note, she did NOT eliminate them all together and live a miserable life in the process), then with the extra she had been spending, she paid off some of the smaller bills for credit cards. This in turn brought a better credit score, more in savings for emergencies, a feeling of being in control of her money, and less stress, not to mention she started eating healthier by eating less fast food.
It's a 30 day challenge to see where you can save.
Give it a try.
