Do your earnings seem to be insufficient as compared to your expenses? Does it ever bother you whenever you realize that you do not relatively spend much, yet what’s left of your earnings say otherwise? This as a call to action. Know however that you are not the problem here. It’s your spending habit and not keeping an eye on your expenses that’s taking a toll on you. Taking control of your finances is essential especially if your outgoing cash flow exceeds your earnings. Keeping track of your expenses is a great help with maximizing your budget, and further your savings. To help in tracking your spending, here are some guidelines:
Stick to your budget. As crazy and difficult as it seems, you have to stick with your budget. Online shopping, malls, fancy restaurants, gadgets, hobbies; you need to have control over them. Purchase only necessities as much as possible. Avoid buying ridiculous stuff you do not necessarily need, because they can be one of the root causes why you are not getting there.
Commit yourself to the cause. You are the only one doing this for yourself, not anyone. Have full cooperation to the cause. If you want change, you’ve got to want it so bad. Ponder all the benefits and advantages this undertaking will provide you.
Record all expenses. Take time to record your expenses each day. Start by making your own Expenses Sheet to help you with keeping track of everything. Keep them sorted out by categorizing them into columns and rows for each type of spending.
Keep receipts. Small or big spending, online or not; everything has to be recorded and kept. This is essential to the process since it is the key evidence to your spending. No matter how much hassle this will cause you, don’t not do it. Remember to include bills of statement.
Sum it all up. Gather all your records and transactions because it’s time to tally everything up. You can start by categorizing purchases from dates, small or big expenses, bills, etc.
Accept and change. Once you’ve totaled your expenses, accept the numbers and make it your motivation. Remember why you started your journey. Do not just embrace the fact of your spending habit. Use the information generated as a call to action; a call to change.
Benjamin Franklin once said, “Beware of little expenses. A small leak will sink a great ship.”