Do you grumble at the thought of budgeting? Don’t worry, you’re not alone. A recent financial literacy survey says that approximately 1,500 adults and found 40% do not budget their money. We get to see that despite of resistance, creating a budget is what most financial professionals recommend. But again if you hate limiting your spending with a budget, you might want to take a few months off and focus instead on expense tracking.
People can see where they’re overspending or where certain financial problems are by tracking their spending. Let us take for instance; you might realize that you should probably start packing a lunch from home instead of buying every day. At the same time if you’re spending each week or month on takeout, you might never feel the need to change.
First Free Online Financial Advisors, MoneyMindz.com gives you few little tips in order to secure your financial state. Let’s begin with small steps like keep a small notebook with you and jot down whenever you make a purchase throughout the day. Well the day-to-day record keeping may seem tedious, but try your best to stay consistent. It’s a fact that everyone makes mistakes, and there might be days where you forget, but track every purchase, even if it’s an impulse buy, and keep up with your tracking.
You just might find yourself being less impulsive with your money now that you have to write everything down and hold yourself accountable for what you buy. One small tip can be that if tracking your expenses manually isn’t your style, download a budgeting app that links to your bank and credit card accounts. You will find various app which will automatically break down your spending into categories, like food and entertainment etc. So, as a result at the end of the week, total everything up and review how you spent your money.
Tracking your spending can be a great way to make sure that your long-term priorities are matching up with your everyday actions. You need to remember that if you want to retire by a certain age, but you’re spending too much to add to your retirement fund, you have an issue.
Now we know that while expense tracking is a good first step to managing your money, you shouldn’t stop there. So, after a few months of recording and reviewing what you buy (and making necessary changes), it’s time to — hold the groans — create a budget. Despite of feeling restrictive, however, your new budget should mirror your actual spending while prioritizing what’s important to you.
For more information visit: www.moneymindz.com or give a missed call to 022-62116588 and download our FinFree app.