Where Does All Of Your Money Go?
Have you ever looked at your finances and wondered where all of your money has gone? You wouldn’t be the first, and you certainly won’t be the last! We all have bouts of not handling our finances well from time to time. Knowing where our money is truly going is important if you’re ever going to get a handle on your spending!
Using Your Notes
If you’re living in the 21st century with the rest of us, then you’ve probably got a smartphone. Have you considered using your smartphone notes app to keep track of what you’re spending your money on? At the end of the week, you can look over it and see where your money has gone. Perhaps you’re a real foodie and love eating out. Maybe you’re addicted to clothes. Whatever it is, you’ll clearly be able to see where the majority of your money goes by doing this, and cut back accordingly.
Downloading An App
If you don’t want to spend time writing down what you’ve spent, how about downloading an app that you can link with your bank accounts? You’ll be able to see what’s going on with your finances in real time, and even things like pie charts outlining where your money goes. You might be surprised at how much you really spend on certain things when you look at it like this.
Savings, Loans, And Interest Rates
If you want to start saving money, you need to make sure you’ve cleared your debts first. A $1000 loan may not take all that long to pay off, but you must be sure that the interest rates are not going to double or triple what you’re paying back in a short space of time. It makes no sense to save money when you have debt to pay off, as all debts have interest added on to them. Rather than saving money, you will be losing money. Instead, use the money you would save to pay off a portion of your debt.
Once your debts are repaid, start adding that money to your savings account. Having savings in place will protect you in case of emergencies both big and small. Many experts advise that people have at least 3 months outgoings saved incase of emergencies, but the majority of people couldn’t afford one month without a job, according to a recent study.
Creating A Financial Plan
If you haven’t got a financial plan in place, it’s a good idea to create one. Write down what you’re earning, and then the things that go out consistently each month. Figure out how much you need to save for certain things, and then you should have the amount of money you’re free to spend on what you like. Keeping track of this and sticking to it will ensure you always meet your financial goals, and that you always know exactly where your money is going!
So, are you going to pay more attention to where your money is going? Leave your own tips below!