Where does all the money go? Have you ever asked this question? Have you ever answered this question?
I hate to tell you this, but it is really easy to figure out the answer. And yes, the answer is more than just “taxes, rent or mortgage, phone bill, and groceries.”
The answer is not in how much we earn, but in how much we spend. When you choose to know how the money is spent, you choose to make your finances come alive!
I remember when I first tracked all of our spending. It was many years ago. I built a fancy computer database with headings for groceries, power, clothing, kid allowance, junk food, taxes, entertaining, etc. Then I talked my husband into handing over all his receipts for the day (he’s a good sport) and I spent hours entering the data in (a little bit of overkill LOL). I did this for nearly five months. The results were astonishing and life altering (or should I say, money-altering). You don’t need to get so fancy!
- Print out one month's worth of mini-tracking sheets from Cindy's Porch (print out a second copy for your spouse):
- Write the dates on the top of each (some people like to cut them up into individual days). Keep the tracking sheet and a pen or pencil with your wallet or purse.
- Now you start. EVERY purchase or bill that is paid gets logged onto your spending tracking sheet. All the groceries, the utility bills, the lattes, the shoes, the gifts, the video rentals, the video store late fees (been there, done that) - you get the picture. Talk to your spouse (or other household members) and get them to write down what they are spending as well. If they don’t want to do this, then simply ask for the receipts and write it in yourself. Don’t get upset if you miss a receipt from your spouse. My husband doesn’t like doing this at all! (Fortunately, he is not a big spender LOL).
- At the end of the week, take a few minutes to add up what you spent.
There is nothing new about tracking what you spend. Most “experts” will tell you to maintain your normal spending habits. Me, I know that if I start spending $5.00 a day on a deli lunch, then I know it is going to cost me $100 for the month. I can start bagging my own lunch and start saving on the second day!
Try to keep this up for a couple months. The first month is going to be an eye-opener. The second month is going to be an adventure. The third month is going to be amazing. Each month is going to teach you something new about how you spend money. Each month is going to show you new ways to save money! Each month is going to help you make your finances come alive!
I know some of you already have methods for tracking your spending. If you are already using something that works for you, don't change it! If it is something that you have neglected over the past few months, simply dust it off and pick it up where you last left off.
Where does all the money go?
