Calculating your monthly expenses is an important part of determining your monthly budget. If you don't know how much you actually spend, you can't determine where all your money is going and you can't take steps to get your spending under control.
Things You'll Need
- Credit card statements for at least the past 3 months
- Small notebook
- Monthly bank statements for at least the past 3 months
- Copies of utility bills for the past 3 months
Carry a small notebook with you and record every time you make a purchase. Whether it is $1 or $1,000, you need to write a brief description of where the purchase was made, how you paid (cash, credit, check), and the amount. Do this for a month.
Total your expenditures after this month is complete. This will give you a snapshot of the most recent month and help you see where your money is going.
Gather the last 3 months worth of credit card statements and bank statements, and calculate your average expenditures from these accounts.
Average the cost of each utility bill for the past 3 months.
Add all these averages together to see how much your monthly expenses are.
Tips & Warnings
- This is not an exact representation, but it will give you an average to go by when writing out your budget.
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