Spending Diaries Helped Me Save Money
It's not about how much money you make, it's about how much money you can save. Moment of transparency, I just learned a couple of months ago what a spending diary is. For the ones who don’t know what a spending diary is it's a documentation of every single expenditure you make on a daily basis over a period of time.
I create my spending diary for a month at a time because things happen in our life out of our control which changes the way we spend our money. Things do not always go as planned so we need to prepare for the unexpected. If you are reading this and you need help with budgeting this blog is for you. I’m a firm believer that writing things down gives you a visual on what you should improve on.
First and Foremost- You should have a spending plan or budget you should know the money that is coming in such as: paychecks, loans, scholarships, child support, disability check, etc. Also you need to know the money that is going out such as: regular bills, credit card payments, utility bills, food, doctor bills, childcare, etc.
2. Create A Spending Plan
Identify Your Expenses
Separate Your Needs From Your Wants
Design Your Budget- write down everything that you will spend within that month or months to come. You can plan a budget for a year to help keep you on track
Put A Plan Into Action- what are some things you need to eliminate to help you save money? What are some expenses you need to cut back on?
Add Seasonal Expenses- vacation, birthday celebrations, holiday expenses, leisure, etc.
3. Start A Spending Plan-
Add Up Your Monthly Expenses
Add Up Your Monthly Take-Home Pay
Make A List Of Your Financial Priorities ex: kids college plan, retirement plan, credit card debit and emergency fund.
Match Your Money With Your Expenses- this will help you to see if you need additional income, what you need to cut out of your budget, also this will help you to see your debt to income ratio.
4. Review Your Plan Or Visit Your Plan Every 2 or 3 Months. I mentioned earlier that sometimes life throws curve balls and things happen out of our control. You may need to tweak your plans if something was to occur. A spending diary will serve as a document to help you to reach your financial freedom.
These tips are very helpful, since I started using my spending diary I’m more intentional and conscious about my spending and finances. I wish all of you well in reaching your financial freedom.
I will love to hear from you, what are your thoughts? Have you ever created a spending diary? What are some of your success stories from creating your spending diary? I'm on Instagram and Twitter Bloggingwithapril, please subscribe to my YouTube Channel Bloggingwithapril, and check out the other stories on this site. Thanks so much for stopping by. 🤗