Day 2: Figure Out Where Your Money Goes

Tracking your spending helps you figure out where your money goes

I hope you are excited about these seven day’s, I sure am. Yesterday we gathered all of our financial records to get them organized. Now that we have all of our financial statements in front of us, it is time to figure out where our money is going. We can’t stop the leaks until we find out what and where they are.

Have you ever asked yourself, where does all my money go after paying bills? If so then you are not alone. By compiling your financial statements you are ready to prepare a summary of your monthly expenses.

Day 2 Figure Out Where Your Money Goes

Make a list of all of your expenses, right down to the smallest item. Pay real close attention to exactly where your cash is going. Oftentimes, you will find a lot of room to cut back in certain areas. If necessary, keep a journal for a day or two and write down every purchase you make. I realize this may be tedious, but you will reap so many benefits from doing so. One such benefit is quickly realizing what you waste money on.

Another reason to track your expenses is that it will help you figure out if you are living within your means because it holds you accountable for every penny you make and spend. You will know exactly how much you spend on both needs and wants and whether or not you are living within your means based on how much of your income is spent on both.

This is the first step in gaining control of your finances. I can’t stress enough how important it is to know where your money is going.

Another 20 minutes down and another 20 minutes closer to financial freedom. Now that we have organized and figured out where our money is going, come back tomorrow so we can categorize your spending.

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4 comments on Day 2: Figure Out Where Your Money Goes

  1. Cedalia M.Tolar
    November 2, 2017 at 11:26 am (1 month ago)

    In the process of writing down my expenses I never realized how much unnecessary purchases I have made..Lol Yes please help a sister out with this mess!

    Reply
    • tracie45
      November 2, 2017 at 7:23 pm (1 month ago)

      I know exactly what you mean Cedalia. Writing down your expenses can be very enlightening. Thank you so much for reading and commenting.

      Reply
  2. heather
    November 10, 2017 at 10:07 am (1 month ago)

    Good read! I have been successfully budgeting since February of this year. It was a pain at first, but now it’s something I really enjoy. At first I looked at my budget most everyday. Now I look at it maybe once a week. It really helps with seeing where all the money goes by actually writing it down and seeing it on paper.

    Reply
    • tracie45
      November 11, 2017 at 2:18 pm (1 month ago)

      Heather, I cannot stress enough how helpful a budget is. I cannot function without my budget. I know just what a pain it was at first but I’m sure that now you see the benefits you will be a budgeter for life. Thank you for reading and commenting.

      Reply

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