Responsibility is a key factor in money management. You can’t lie to yourself, you can’t try to trick yourself, and you definitely can’t spend and spend without thinking of the repercussions! If you’ve got other, more critical things to pay for, reckless shopping and ill thought out investments are going to tank your credit score and savings account alike.
Which is why it’s time to get to grips with what you spend, on a monthly basis. If you manage to keep track of these amounts, and even the smallest pennies are going to count, you’re going to find it a lot easier to be responsible with your money.
It can feel like there’s a lot of rules to saving money, but every person is in a different financial situation. The one thing that remains the same is the need to spend to survive! So with that in mind, here’s a couple of ways to help you keep an eye out.
Make a Commitment
You need to keep track of what you spend every time you do, in fact, spend. And that means on a daily basis, every time you buy something, or money otherwise goes out of your account, you need to make a note of it.
But keeping this kind of commitment can be hard, especially when you’re in a rush to get out of the shop, or they email the receipt to you and it gets lost in the spam folder. So you might need to make a budget to help you out – it’ll also make those saving goals a lot clearer, and the pathway to them much easier to walk along!
If you need help with either of these tasks, because you know you can be forgetful, or you don’t quite have a savings goal in mind, you can always turn to a professional for help. Going online and visiting the WealthPlan Advisors Website for example, might just give you the ideas and strategies to put into place.
Keep Your Cash in Envelopes
If you know the expenses you’re going to be forking out for over the next month, then head on down to the nearest ATM and get out what you need to cover them. When you get back home, you can separate the cash out into piles, and then store them in clearly labelled envelopes.
It might sound a little old fashioned, but it means you won’t be reaching for your credit/debit cards 24/7, you won’t be overspending, and you won’t be filing your expenses away into the internet banking app you rarely check. You’ll have your expenses right in front of you, and you’ll be able to deduct the prices from the cash in the envelope; compare what you had at the start of the month to what you have now, and you’ll be much better informed on your spending habits!
Keeping track of how you spend is the first step in maintaining a healthy bank balance. Make sure you try it!