Work on managing every penny you spend. Here is how you can…..

Every person have a particular financial goal to reach. Be it a person with debts trying to eliminate them or a person who is living on paycheck one after the other without having to worry how much he is spending.

Trying to reach that goal without paying attention to the spending you make can feel like filling a bucket with a hole in it says Allstates.

The simple thing you can do is keep track of every dollar you spend which becomes very easy if you follow these simple tricks.

Give your spending a check –

The idea behind this is every time you spend the money ,note it down.

Here are a few ways how you can-

1. Keep a notebook with you and note every time you do any spending and also note down what is the spending done for .
2. According to forbes, there are some apps available which keep in track your spending by connecting to the bank account .So,the spending you make via your account will be kept in track by those apps.
3. Use a budget worksheet or spreadsheet to organize and tally your spending.
4. Collect the receipts and keep them with you and add those to your tracker.
5. Try to make most of your purchases from your card in order to get the whole record in your bank statement .

CFPB suggests noting the following as you start your tracking process –

1. If you are spending for any subscriptions which you rarely use.
2. If there are any unnecessary expenses you are making which can be cut off.
3. If any expense surprises you unexpectedly.
4. If you are spending differently during weekdays and weekends.

 

After spending atleast two weeks or so,you would be able to analyze your spending and what you need to do then is start prioritizing your needs ,cut off your wants if necessary  and give a check to the spending.

Make a routine and stick to it –

As you have studied your expenses ,needs and wants,what you need to do next is paln a budget and stick to that .Figure out the amount left with you after paying all the priorities from your income consider how much you would like to save for reaching the goal you have set.

To keep the budget intact, keep in track of the expenses. This will help you to compare between what you planned to spend and what you have actually spent.

Keep patience while going through the process as you may need time to settle down to the newly made routine.

Keep yourself focused on actively managing the spending and savings.

Set new goals every time you achieve one and work on achieving those. Cut spending where you spend the most. It is not a difficult job to manage your expenses. Just give yourself time and stay focused on prioritizing the needs more than the wants and you are good to go.