Keep Track of Your Spending
Even if you don’t have a budget, keeping track of where your money goes can be an excellent way of reducing your spending in the long run.
Today, most of us use plastic to make our purchases rather carrying actual cash. While this is really convenient and very secure, it dramatically reduces our sense of how much we spend. Most of us don’t keep running totals in our heads from purchase to purchase, meaning we don’t know how much we have left. This disconnect makes it easier for us to overspend. By keeping track of your spending, you are less likely to spend more than you can afford.
Keeping track of your spending also reveals some pretty interesting facts about purchasing habits. Most people are amazed at just how our “small indulgences” add up. You’re not likely to change an expensive habit if you aren’t aware that you have it or how much it actually costs. Keeping an eye on your spending helps you find the small, regular purchases you can avoid to save a big amount in the long run.
Tracking your spending can be as simple as saving your receipts and spending a few minutes at the end of the week to add everything up. You can also use online services to automatically track your purchases. Whatever way works best for you, regularly tracking and reviewing the money you spend will help you direct more of your hard-earned dollars toward your financial goals.