If you’ve took part on Monday’s challenge – Where Does It All Go? to track everything you’ve spent your money on, by now you will have started to collect some useful information. If you didn’t it’s not too late to take part as tracking your expenditure will take you a long way towards getting your spending under control.
If you’re using the envelope system I’m sure you will be seeing that one envelope is getting fatter than the others.
If you’re using iXpensiT for the iPhone, then you can run a report and see where it’s all gone.
Before we continue to look at your spend in more detail, pop over to your online banking account where you pay your bills from and note down any transactions incurred over the last week and enter them into your spending records. (If you’re using the envelope system, just write the transaction down on a bit of paper and pop it in the appropriate envelope) .
Now run the report or total up the receipts in each envelope.
Are their any surprises?
Are there any subscriptions you’re paying for which you don’t use? Are there any bills you’re paying which you don’t recognise?
[Note: I know someone who once did this exercise and found they were paying hire charges for a washing machine in a house they hadn’t lived in for 2 years!]
How much of your spend is going on what I would call your fixed costs; such as your rent, utilities, telephone/internet and TV/Cable/Satelite.
Can you do anything to reduce these costs (see my post on how I earned £19.20 a minute yesterday)?
Are there any opportunities here to save money?
(Tomorrow we’ll be republishing our popular guide on how to save £50/$50 which may give you some more ideas)
“but Matthew, the car broke down, we had a leak in the bathroom…”
Sure, stuff happens. That’s life. But it’s how you deal these little emergencies is what counts.
On Monday we’ll talk about creating an emergency fund before we go on to to talk about savings.
So what have you learnt about your money this week and, more importantly, what are you going to do about it?