Ask yourself the following questions:
- What are you really spending your money on?
- Do you keep track of what you’re spending on a day to day basis?
- Is the purchase you are making necessary?
Why it is important to track what you are spending
Let’s say you’re working towards saving up for something that you’ve wanted for a long time or you’re looking to get out of debt.
If you keep track of what you are spending, you will be able to focus on what purchases you have made are necessary and what purchases are unnecessary.
By tracking exactly what you spend can help eliminate the never-ending cycle of debt.
Perhaps you’ve found an item of clothing you like or a new beauty product for sale and you look at the price and notice it is only $5. $5 isn’t overly expensive, right?
I had the mindset where I would say, “Oh, but it’s only $5!”. That $5 can add up to $10, $20 etc… If you keep having that mindset, you may not be helping your spending habits.
Turn your $5 into a better savings and what you spend habit.
If you track what you are spending on a day to day or weekly basis you will be able to find out exactly where your money is going.
How to track what you’re spending
I have created a FREE PDF daily spendings workbook, which you can download below. The daily spendings workbook can help you keep track of what you’re spending on a day to day basis. It takes less than five minutes each day to fill out.
Create a spreadsheet, if you prefer to keep tracking of what you are spending on a weekly basis.
- Keep your receipts. Don’t want to hold onto the receipt? Take a photo of it on your phone and enter it into your workbook or spreadsheet later.
- Write down all of your purchases.
- Create a spendings goal. Perhaps you have set a goal to only spend $100 on groceries for the week. Did you go over or under this goal?
Compare what you spent between one week and another week. Comparing what you have spent will help you to determine what costs may need to stay and what costs can go. You can also determine if you have spent less or more during that week.
Determine what needs to stay and what needs to go
Determine what purchases need to stay and what purchases can be ditched.
Do you really need the item you want to buy/have bought. Is this purchase a fit for your daily life? Will this purchase be worth while?
Download a copy of your free workbook below
FREE My Daily Spendings Workbook!
Track your spendings and download your FREE PDF My Daily Spendings workbook.