You can't make progress on your budget goals until you know where your money is going. That means it's time to track spending.
Get a grip
Recruit the whole family to help keep track of all expenses for at least a week or two - longer if you can manage it. You'll see patterns and how routine mindless spending can mean death by a thousand cuts to your budget.
You may decide to use a small notebook and record each expense. Or you may prefer to use software such as Quicken or Microsoft® Money. It might work for you to collect all receipts and bills as you pay them. Whatever your choice, try to be consistent and pick a system you think you'll use and not abandon.
If that sounds too taxing, try this: Collect all your receipts for several days, then review each receipt. Put a plus sign or minus sign next to each expense - plus for on-budget, within your goals spending, and minus for off-budget, working against your goals spending. One red flag: being unable to even recall making a purchase.
Get a goal
You also won't make much progress unless you're monitoring spending for a reason - weighing your expenses against a larger goal or goals.
Give whatever tracking exercise you use a rest for a month and then repeat it. Do you see improvements? Or have the leaks just shifted to other categories? Use credit union tools - direct deposit and automatic deposits into savings - to help you on task.
Get a grip
Recruit the whole family to help keep track of all expenses for at least a week or two - longer if you can manage it. You'll see patterns and how routine mindless spending can mean death by a thousand cuts to your budget.
You may decide to use a small notebook and record each expense. Or you may prefer to use software such as Quicken or Microsoft® Money. It might work for you to collect all receipts and bills as you pay them. Whatever your choice, try to be consistent and pick a system you think you'll use and not abandon.
If that sounds too taxing, try this: Collect all your receipts for several days, then review each receipt. Put a plus sign or minus sign next to each expense - plus for on-budget, within your goals spending, and minus for off-budget, working against your goals spending. One red flag: being unable to even recall making a purchase.
Get a goal
You also won't make much progress unless you're monitoring spending for a reason - weighing your expenses against a larger goal or goals.
Give whatever tracking exercise you use a rest for a month and then repeat it. Do you see improvements? Or have the leaks just shifted to other categories? Use credit union tools - direct deposit and automatic deposits into savings - to help you on task.
The money experts at TCU can help you review your budget. Contact a TCU Representative today with any questions.
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