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Money Saving Articles

Track your spending

Track your spendingThe first and most important step to a debt free lifestyle is tracking your money. Where it comes from and where it goes. If you know where and how every penny is spent, then you can begin the journey toward financial responsibility.

You can use any kind of method you want from a checkbook register to Excel, Quicken, your cell phone or even a notebook. The point is to diligently track every cent you touch, whether it’s physically or electronically. This exercise is about developing the habit of tracking your money so you can make informed decisions later.

There are two ways to go about this:

  1. Keep all receipts and update your log at the end of the day or week
  2. Record every transaction as it happens

Do what works best for you and your lifestyle, but make sure no purchase goes unrecorded. Even if you find a dollar on the ground, mark it down.

Use this information to categorize your spending habits so you can see exactly how much money is going towards new shoes or Starbucks. Once you are adept at tracking your spending habits, you can start making lifestyle changes and continue on your journey toward economic freedom.

One Response

  • Posted by Deborah Spagnuolo on Mar 22, 2011

    Tracking spending is often eye-opening for people who are doing it for the first time. It’s amazing how many dollars are frittered on things that don’t add much to your lifestyle. Tracking allows you to see where those holes are in your wallet.

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