Do you track your spending the same way you track your social media

Over 40% of Americans check Facebook every day but the percentage of those who check their personal finances daily are just 2.2%. Certainly, it’s more fun to check Twitter, Instagram and Facebook than planning a budget, however, if you desire financial comfort that will last a lifetime, you must create a plan for spending. Rather than look pensively at your pals’ travel photographs, focus on planning your personal frivolity as soon as you are able to control how you spend money now and in the future.

 

It doesn’t really matter if you’re just starting out in your career or have been sustaining yourself for a long time, one of the greatest gifts you can give your future is to have a financial plan. Thus far, the number of Americans that have such plans are less than 33%. To begin with, you must diligently keep track of your expenditures for no less than thirty days. The vital tool you need to make this happen is more psychological than technical: you must make a personal commitment to keep track of your spending as often as you check Twitter at least.

Getting started on keeping track of your expenses requires a multi-pronged approach.

You need to get a notepad and pen and record every single penny you spend in cash. You can also use a note-taking app on your smartphone to do same.

 

 Do not discard any of your receipts.

Record all transactions done online including paying bills, particularly if you automate your payments, in addition to shopping online.

Write down any checks you raise for your rent or other bills.

If you set up a system where money is transferred automatically into a savings account, record it as part of your monthly expenditures.

The moment you have kept accurate records for complete 30 days, you are set to compute and classify on a piece of paper or a worksheet. Prepare to be surprised! It can be shocking to see how much money you spend on lattes and paying off loans. You can utilize some of the under listed categories:

Utilities: This comprises your internet service and smartphone bill

Housing: Your rent or mortgage payment

Transportation: Includes your subway and bus fees or Uber rides or car payment and gas

Food: Comprises eating out and groceries

Housing: Your rent or mortgage payment

Entertainment: Include concert tickets, happy hour drinks and your cable bills

Medical bills

Credit card payments

Student loans

Clothes

Gifts

And the major group of all: Savings. If that category is empty right now, you should prioritize that as soon as you finish reviewing your spending. Set up a system that automatically transfers some amount of money into a savings account for urgent situations.

Thus, before you decide to check what’s trending on Twitter for the 15th time now, retrain your mind to begin tracking your spending. You just might find something about your financial future that is worth tweeting about.

2017-40696  Exp. 10/17