Do you know how much you spend each day? Where does the money go? Have any idea?

Well it should be the first step you take in making the move from debt to wealth.

Get a notebook that you carry around with you for a month and record every cent you spend. Now you may be tempted to record it later, however you may just forget that you used $1.35 to buy some candy that you could not resist. The key is to be vigilant or the process will  not hel you make the adjustments that you need to make later on.

So…

Record how much you spend for the month without changing anything that you normally do. At the end of the month, you look at where you spent the money. Are you spending wisely or without thought? If the latter is the case, consider how hard you worked to earn the money and ask yourself if your time and effort is worth the waste.

If not, change the things that you do not like by cutting out the wasteful spending. Track your spending for another month and see again where you cut back. The money that you save in these areas can be used toward debt repayment or even for saving. You may even decide to treat yourself to something great – a book, a movie, dinner out as a reward for saving.

That does not mean that you go overboard with the treats. The idea is to save or reduce your debt.

Have fun doing this!

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Tags: budget, money
Filed under: Money tips