Budget Method #3 – Write-It-and-Track-It
This last system for managing your expenses is the one people mostly associate with making a budget. And probably the reason so few of us do it.
But, there is a reason it’s still around: it works!
Just like keeping a food journal helps people lose weight by making them accountable for every bite, a spending journal doesn’t let you fool yourself into thinking you spend less than you do.
This is one of those habits that is hard to get into, but once you do, you may find you love the power it gives you over your finances. Jean Chatzky says in her book “You DON’T Have to Be Rich,” it’s not the amount of money people have that makes them happy. It’s how much control they feel about the money they do have. By the way, that is a great book.
Writing down everything you spend helps in two ways:
- If you have to write down every time you spend something, you will think twice about each purchase because it’s a pain in the neck to write it all down!
- You can really see where your money goes and identify ways to spend less so you can save more.
For more on this, or any budgeting method, search YouTube for videos on the subject. There are a lot of ways to approach your spending. Finding one that you can live with long term is the way to start on the path to financial freedom!
