Finance Friday: Tune in 2 Your Spending Part 2
Well how did it feel last week to complete the exercise and really get Tuned in 2 Your Life and your money?? Empowering, right??
Today I want to complete step 2 of this exercise: Tracking Your Spending ~ each and every day. We briefly talked about it in a previous Finance Friday post, but today I want to dig in to the heart of it.
This is what I want you to do. Take an index card, a small note book, or a post –it note and keep it with you during the day. Each time you spend some money (no mater how small it seems) write it down.
Yes, write EVERYTHING down.
I am not exactly sure how this works, but from our experience it seems like there is a place in your brain that “forgets” a lot of stuff. Haven’t you ever said “I don’t know where that $20 went?… I know I sure have.
But when you write it all down, even if you forget later on in the week, you can go back and find out where all your money went.
Tune In 2 Your Spending
When you really find out where all your money is going, then you can take action and redirect it if you like. You will see where your habits meet your wallet and then decide which ones you want to re-think.
I am not saying give up on everything you love, but when you are aware of your spending you can make better decisions. For example, What if you made coffee at home and brought a cup to work one day a week?
I used to buy a fun magazine each time I went to the store to go grocery shopping. When I saw how much I was spending on magazines each month (over $30~ some weeks I bought two or more) I thought YIKES! That is more than $300 a year!!
So now that I am aware of these purchases, I have cut down on all these magazines and found other ways to read e I can get many of my favorite magazines at the Public Library.
Just give the Track Your Spending plan a try and soon you will see some spending area that you might want to re-think. What is really important to you? Does your spending move you towards or away from your goals??
Here are some more of my personal examples: For me, I like a certain shampoo and hair gel. I will not give these up just because there are cheaper ones that I could buy, as I like my brands. BUT I will give up buying a $1.25 soda at the office each day and bring one from home instead. I also will bring my lunch from home each day so that I can eat healthier and save $5.50 or more each day at work.
This is what I will give up to Tune In 2 My Financial Goals.
What about you? Where can you make some cuts and plan to save?? Share your ideas below in the comments or on Facebook!