Tuesday, 3 February 2009 11:35
One of the first steps to help you start saving is to track your actual spending for a month. You’d be surprised at how the little things add up. This will help you make adjustments in certain areas.
Keep a journal with you or refer to your monthly account statement. Separate your expenditures into different categories like: Mortgage, Cable, Utilities, Entertainment, Groceries, Dining Out, etc. There’s software you can buy that can help you with this as well like Quicken. Once you determine how much you have spent in each category, it’s time to see if anything stands out or if there’s anything you think you can cut back on. Usually people find the Dining Out and Entertainment categories to be more than they expected. Those $10 lunches and $40 dinners really add up over a month.
It’s also important to do this exercise on a regular basis to make sure you aren’t going back to your old habits.
Good luck and keep saving!