TRACK EXPENSES AND KEEP THEM IN CHECK

Where is my money? What happened to my salary?

I want my money!!

You have nothing left from your paycheck and it is not even mid-month. I hear you, you are not alone. It is one of the great mysteries of humanity: Where does the money go when no one sees it? It seems as if it magically disappears. All of us have felt that way at some point, but after crying about it, in most occasion we have done nothing to change the trend.

You will never reach any goal if you do not know the money coming in (this is fairly easy), but especially if you do not control what comes out (here lies the problem). There are many expenses that we ignore, sometimes because they seem small amounts (watch out for these, they are the most dangerous), sometimes because we use credit cards and do not realize it, or because we use cash and vanishes almost instantly.

 

Start keeping an eye on your expenses

You are going to need one of these . . .

The first step in solving any issue is to recognize it and to tackle this you need to quantify your expenses. START KEEPING TRACK OF ALL OF YOUR EXPENSES.

-Record ALL costs, no matter how small.
-Start by taking down the expenses you incur in a month.
-Use paper and pencil, expense sheets, excel documents or whatever you want, below I offer tools to help you doing it.
-Then begin organizing expenses by category.

Are you scared enough? If this is the first time you do this you will surely be amazed at the amounts you spend on “unnecessary” or not staple areas. You may already have an idea where the biggest expenses are or perhaps this is a wakeup call. In either case, start analyzing your expenses to see where you can trim, I am sure you have a lot of room. Cheer up!

REMEMBER THAT THIS IS ONE OF THE FIRST STEPS TO ACHIEVE YOUR GOAL, CONGRATULATIONS!

Some useful tools:

-If you want to use paper and pen, click and print here:

-If you want an online calculator, this is very detailed, I like it quite a bit.

-If you want to see all your expenses at once I recommend:
www.Mint.com
www.Personalcapital.com

 

How about you? How do you track your expenses? What was your biggest realization when you saw those monthly expenses? For me, it was the budget on entertainment, I never thought it was so high. COMMENT BELOW