Replace Unchecked Spending with Expense Tracking
Where does your money go? A crucial step toward improved money habits is getting your arms around where you spend your money now. A good way is to track all of your spending for three months so you can see exactly how much you spend on everyday items both big and small, like:
- Auto expenses.
- Debt payments.
- Medical payments.
- Retail shopping.
Diligently tracking all your expenses may surprise you. You’ll likely uncover areas for potential spending efficiencies, like subscriptions, memberships, or services you don’t use anymore. Or the popular example I came across in my research: expensive daily lattes.
There are many tools to help you track expenses, from apps to journals to online finance websites. Many let you download and analyze your spending data from credit cards, bank accounts, and digital payment services. Try to make sure you capture all the ways you make payments, including cash.