Being able to account for where my money is going has been an acquired discipline. I'll admit, establishing a consistent way to account for every cent is not easy. While there are all sorts of financial tools available that will upload your income & expenses by tracking your checking account, I write down every penny that I spend daily. I have a spreadsheet that I transfer any amounts to that helps me track on a month-to-month basis. This exercise requires both commitment, accuracy and honesty. Doing this has been an eye-opener as I've become more aware of where my hard earned dollars are being absorbed. Tracking my spending on paper has also helped me identify where my spending weakness are (like that daily cup of coffee or unhealthy snacks, etc), and as a result I tend to think twice before making an unnecessary expenditure.
I used to be overwhelmed at the end of each month because I remained aloof at where my money went. I didn't have a handle on what needed to be paid, when it was due or whether or not I had already made a payment that month. I was using my debit card irresponsibly (without knowing my balance) and then praying that that last purchase would not hit my account before my next payroll direct deposit. Poor budgeting habits resulted in immeasurable amounts in late, over-the-limit and NSF fees, embarassment, stress and frustration.
Now that I've brought awareness to everything that comes in and goes out, I feel more in control. I've been able to track spending habits, establish an EF savings goal, and stay current on ALL bills. I know exactly how much I have in my each of my accounts at any given moment. I have computed how long it will take to payoff some of the bigger expenditures (like my truck or few remaining cc's).
Oh, and there's something called "peace of mind" that comes along as a fringe benefit. When it comes to my finances, I now face each day courageously and with confidence. It doesn't matter how little or how much you bring home. What matters is how well you manage what you make! If I can do it, anyone can! ;-)
I used to be overwhelmed at the end of each month because I remained aloof at where my money went. I didn't have a handle on what needed to be paid, when it was due or whether or not I had already made a payment that month. I was using my debit card irresponsibly (without knowing my balance) and then praying that that last purchase would not hit my account before my next payroll direct deposit. Poor budgeting habits resulted in immeasurable amounts in late, over-the-limit and NSF fees, embarassment, stress and frustration.
Now that I've brought awareness to everything that comes in and goes out, I feel more in control. I've been able to track spending habits, establish an EF savings goal, and stay current on ALL bills. I know exactly how much I have in my each of my accounts at any given moment. I have computed how long it will take to payoff some of the bigger expenditures (like my truck or few remaining cc's).
Oh, and there's something called "peace of mind" that comes along as a fringe benefit. When it comes to my finances, I now face each day courageously and with confidence. It doesn't matter how little or how much you bring home. What matters is how well you manage what you make! If I can do it, anyone can! ;-)