Are you spending way too much and not even sure where the money went?
It’s time to put your finances in check. Where do you even begin?
It’s actually quite simple. But it does take some effort and planning but it’s your finances after all, so it’s worth your time!
If you’re spending too much, it’s time to make a budget. Here’s how:
1. Track Spending
The first thing you need to do is track what you spend. If you bank online, which you really should be doing by now, you’ll be able to go back and see line by line what your expenses are.
How much money did you spend on groceries last month? Better yet, how much did you spend on dinners and shoes? Hmmm, take a note of that one in particular.
2. Group and Average Out Spending
Print out your finances and using a highlighter, mark what you’ve spent on every expense. Calculate for the past three months. After highlighting and grouping everything, create an Excel spreadsheet and add up all those expenses. Average it out by three months. You’ll be surprised at your spending habits and will want to cut down on some of your expenses.
3. Expenses
Once you know how much you’re actually spending, it’s time to budget all of your expenses. Using Excel, create a spreadsheet with all of the expenses for that month. You can also date the expenses so you know when those bills will come out of your account.
4. Income
Next, add your income and using simple Excel formulas, see what money you have left to play with after all expenses are paid.
5. Assess
You might be frightened that you’ll only have $25 left for “entertainment” but this is the time to figure out where you can cut down on spending.
By looking at all of your spending habits, you will be able to find ways how to spend less. Tracking every dollar might seem silly but it will help you become more aware of how you spend.
By seeing your numbers in front of you and updating your budget regularly, you will be sure to keep track of your spending.
Then you can save up for that dream vacation!
