Tracking Leads To Saving
When potential clients meet with me, overspending is commonly identified as one of the major obstacles keeping people from achieving their financial goals. They do not know where their money is going. Although they make decent money, they are convinced that they need to make more to solve their money problems. Before you decide where to go, I believe it’s important to know where you are.
Once and individual or couple decide to become clients, I give all of them the same homework. They are given a Two Week Spending Tracker-ExBankerBlog and instructed to track everything they spend, including bills. Although some are reluctant, everyone agrees to do it. Some even tell me that I don’t want to see how much they spend. I assure them that there will not be any judgement. Two weeks later they return with their results.
80% – 90% of the time they are surprised by the results. ATM cash withdrawals, shopping, and eating out are some of the largest expenses. These expenses can be small on an individual basis but add up during the course of the month. In fact, some clients spent as much as $500/per month eating out and they were surprised! They knew they are out a lot but had no idea it was that much.
There is nothing wrong with eating out, shopping, or making ATM withdrawals. However, if you realize that you are spending more than you should, I suggest that you look at your spending and decide how much you can cut. Then you can use those savings to decrease some of your debt or to increase your savings. Tracking your spending can show you where you are and help you to begin your journey to better money management. Track your way to success. Start today. All the best.Click here to get a free copy of my eBook: Money Management 101