Money is a tough subject. It is a huge part of our daily lives. We need it to eat, to have a roof over our heads and to do any number of things. Yes the best things in life are free but we often need money to have the chance to enjoy the rest.
Because money is so important, it is something we need to consider in how we live our lives. One way to do this is to keep a budget.
The first thing to do is to figure out where your money is going. Make a list of all of your necessary expenses. For instance,
Rent
Electrical
Heat
Insurance
Groceries
Car payment
Cell phone
Cable bill
Gas or bus pass
Student Loan
Next make a list of your other expenses. For instance,
Entertainment
Eating out
Smoking
Coffee -takeout
Clothing
If you spend a lot in the Entertainment category, you may want to break it down further. Such as movies, going to the bar/club, books, etc.
Use your credit card statements or checking account to figure out where your money is going. If it is not obvious, then it is time to do some tracking. For the next month, write down every penny you spend. Keep your receipts in an envelope. If you don't get a receipt, write what you spend, where and what it was on, on a piece of paper and put that in the envelope. At the end of the month, add it all up and write out what you spent in each category.
Once you know where your money is going, you can figure out where you need to cut back. You will be surprised where some of your money goes.
No comments:
Post a Comment