Thursday, August 9, 2007

Save More by Tracking Down Your Spending

It does not matter for what purpose you are saving money, it could be for college, for a new car, a house or to become debt free. What matters is that you want, at all times, to save the maximum possible amount. One trick to help you doing that is to have a tight control over your personal finance by knowing exactly how much you spend, for what reason and when.

The first time I actually looked at the numbers I was surprised by the amount of money I was spending in small things. A lot of small, cheap, things were adding up to a point that more than 40% of my spending was going “under my radar”.

Have all information in one place

Most of us have more than one saving or checking account, investments, multiple credit cards, cash holdings. With all that data spread through your financial life it is easy to get lost. Gather all data in a single location. The first time I did that I started an Excel sheet and started entering my balances for everything I had and then followed by all spending I did from that day one. Each time I reached a new month, I would open a new tab in my sheet, rollover the balance from the previous month, added my income sources (such as my salary) and continue the process.

Step by step:

  1. Gather your balances in one place (preferably one that does calculations automatically for you such as Excel, Google Spreadsheets, Quicken, etc).
  2. Each day update your sheet with your spending as a negative amount (bills you paid, anything you bought, etc), including the description. Example: Loan payment -$1500
  3. Each day update your sheet with money you made as a positive amount (salary you received, lottery you won, etc ;)).
  4. Do that until the end of the month and then roll the balances to the next month sheet.
Analyze the data you have

Add up each type of spending you have so you know how much you spend per month with it. For example, add up all car maintenance, car parking costs, and car gas so that you know much your car costs. Do the same for house bills, entertainment, debt payment and other minor spending (Starbucks, Netflix …).

The moment you do that you will probably notice a few things you could easily reduce, such as stopping buying coffee at Starbucks but doing it at home and saving about $50 per month.

Plan your changes

Before you go over the top with the frugality idea, use your sheet to project the impact of cutting down one or two things. If you believe the sacrifice is worth the benefits, go ahead! One good tool to do that is by calculating your crossover point (a.k.a. financial independence) and then revising the calculation with your changes.


Aluguel de Computadores said...

Hello. This post is likeable, and your blog is very interesting, congratulations :-). I will add in my blogroll =). If possible gives a last there on my blog, it is about the Aluguel de Computadores, I hope you enjoy. The address is A hug.

Anonymous said...

Hi !.
might , probably curious to know how one can make real money .
There is no initial capital needed You may start to get income with as small sum of money as 20-100 dollars.

AimTrust is what you haven`t ever dreamt of such a chance to become rich
The firm incorporates an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.

It is based in Panama with offices around the world.
Do you want to become really rich in short time?
That`s your chance That`s what you desire!

I feel good, I began to get real money with the help of this company,
and I invite you to do the same. If it gets down to choose a proper partner who uses your funds in a right way - that`s AimTrust!.
I take now up to 2G every day, and my first investment was 500 dollars only!
It`s easy to start , just click this link
and go! Let`s take this option together to get rid of nastiness of the life

Anonymous said...

av豆豆聊天室av999免費影片85cc免費影片觀看後宮777女人網歐美成人18 sex us男男同志辣妹曾根正妹真情寫真視訊無碼酒店經紀魔女18情色照片免費色情貼圖18禁遊戲區免費色情漫畫sexav亂倫漫畫素人大全集私人性愛自拍影片一夜情貼圖無碼免費大高雄一夜情巨乳排球雄貓貼圖片區波波情色貼圖高跟鞋美腿輕熟女無碼直播性愛自拍貼圖成人圖貼區女優遊戲www 18jack comsex game免費av女優色情自拍絲襪美女素人圖免費自拍貼圖ab女優正妹桌布霹靂馬俱樂部台灣自拍咆哮成人繁體日本av女優room18sexy diamond

Anonymous said...

Hi there!
I would like to burn a theme at this forum. There is such a nicey, called HYIP, or High Yield Investment Program. It reminds of financial piramyde, but in rare cases one may happen to meet a company that really pays up to 2% daily not on invested money, but from real profits.

For quite a long time, I earn money with the help of these programs.
I'm with no money problems now, but there are heights that must be conquered . I get now up to 2G a day , and I started with funny 500 bucks.
Right now, I managed to catch a guaranteed variant to make a sharp rise . Visit my blog to get additional info. [url=]Online Investment Blog[/url]

Anonymous said...

Never put both feet in your mouth at the same time, because then you will not have a leg to stand on.............................................

Anonymous said...





Anonymous said...

Hi everybody!

Let me introduce myself,
my parents call me Nikolas.
Generally I’m a venturesome analyst. recently I take a great interest in online-casino and poker.
Not long time ago I started my own blog, where I describe my virtual adventures.
Probably, it will be interesting for you to utilize special software facilitating winnings .
Please visit my web site. I’ll be interested on your opinion..

Anonymous said...

[url=]buy levitra[/url]
buy levitra online canada
buy levitra online usa
buy levitra online free
[url=]buy levitra[/url]
buy levitra online without prescription
buy levitra online calgary
buy levitra online us

Anonymous said...

The first question many people have about links london one way links is why are they so important.If you links of london compared two websites that had exactly the links jewellery same content but one of them had one hundred one way links versus none on the other site links of london uk you would see that the site with one way links had a much better cheap links of london ranking with each search engine. links of london bracelet The primary reason for this is there is no reason for one site links of london charms to link to another without a reciprocating link other than that links of london watches site determines that the website is an authority on it's given niche links of london rings A one way link is when a website links to another site without links of london necklaces asking for a reciprocal link back.

bisnis internet said...

I love this post indeed

bisnis online

buy xanax online said...

This kind of blog always useful for blog readers, it helps people during research. your post is one of the same for blog readers. said...

Thank you for the article, really useful data.

Anonymous said...

Hi I am so grateful I found your website, I really found you by mistake, while I was looking on Aol for something else, Regardless I am here now and would just like to say many thanks for a marvelous post and a all round enjoyable blog (I also love the theme/design), I don’t have time to read it all at the minute but I have book-marked it and also added in your RSS feeds, so when I have time I will be back to read more, Please do keep up the awesome jo.|
[url=]pay day uk

Anonymous said...

Write more, thats all I have to say. Literally, it seems as though you relied on the video to make your point.
You obviously know what youre talking about, why throw away your intelligence on just posting
videos to your site when you could be giving us something enlightening to read?

My blog post - how belly dancing hull
my site - How To Wear Belly Dancing Hip Scarf

Anonymous said...

Admiring the dedication you put into your blog and in depth information you provide.
It's awesome to come across a blog every once in a while that isn't the same
old rehashed material. Great read! I've saved your site and I'm adding your RSS feeds to my Google account.

Visit my site - singing vocal lessons

Anonymous said...

Hey there! I simply want to give you a big thumbs up for your great information you
have got here on this post. I am coming back to your web
site for more soon.

Also visit my web blog: We Buy Houses Barnsboro Nj

Anonymous said...

This is really interesting, You're a very skilled blogger. I've joined your
feed and look forward to seeking more of your great post.
Also, I've shared your website in my social networks!

my weblog :: tattoo removal techniques

Anonymous said...

What's up, I would like to subscribe for this website to take most up-to-date updates, therefore where can i do it please help out.

my page; Tattoo Removal San Diego

Anonymous said...

Hello, i believe that i saw you visited my website so i came to return the choose?
.I am trying to in finding issues to enhance my website!
I suppose its ok to make use of some of your ideas!

my weblog - Best singing Lesson

Anonymous said...

I think this is one of the most important info for me.
And i am glad reading your article. But should remark on few general things,
The site style is great, the articles is really great : D.
Good job, cheers

Feel free to surf to my webpage; songs To play on the uke
my web page: ukulele Teach yourself

Anonymous said...

This site truly has all of the information I wanted concerning this
subject and didn't know who to ask.

Stop by my weblog; asbestos lawyer denver

Anonymous said...

I have read a few excellent stuff here. Definitely worth bookmarking for revisiting.

I wonder how much attempt you put to make this kind of fantastic informative web

Review my blog post money ()

ali khan said...

The post is absolutely wonderful!advertising | advertisement | production houses in pakistan | pakistani matrimony

game cho android said...

game avatar | tai avatar | avatar | game iwin | tai iwin | iwin | game android | game di dong
| game dien thoai | game điện thoại | tai bigone | Game bigone | tai game bigone | bigone

Standard Solutions said...

Amazing Article :) Im extremely affected by your blog.I’m happy that you simply shared this useful info with us.I am quite sure I’ll learn many new stuff right here!
Web development in Lahore