When you track your expenses, you just might be surprised how much money you spend on little expenses. To understand your pattern of expenses focus on a short timeframe, probably monthly or weekly.
Start tracking your expenses by following these steps.
#1. List your regular monthly bills, such as your rent, loan, utilities, airtime, Internet service, cable TV, insurance, feeding, transport etc.
#2. Track your out-of-pocket spending for a week. Keep track of all the money you spend for a week on groceries, fuel, meals, clothes, entertainment, personal items, and even coffee and snacks, which can all add up. Keep a small notebook with you or just collect the receipts during the day and add them to the list in the evening.
#3. Review the numbers. Now that you can see how you’ve spent your money, look for ways to save. Some strategies may be simple, like cutting back on meals out or cancelling some frivolities.
#4. Create a plan. Review all of your expenses for ways to cut back, and then decide what to do with the extra money. Set specific goals, such as building an emergency fund, paying off your loans, or increasing your retirement savings.
Join readers who get our weekly entertainment recap — the stories worth your time, delivered every Friday.
No spam. Unsubscribe anytime. By signing up you agree to our Privacy Policy.
