How to Take Control of Your Budget

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By shellyann36
User-Submitted Article

Article Rating: (8 Ratings)

With today's economy people are scrambling to lower their monthly budget and get back on financial track. This article will help you understand where your money goes on a monthly basis. By knowing where your money goes you will be able to trim back on expenses that are not necessary.

Difficulty: Easy

Instructions

Things You'll Need:

Some sort of expense tracking schedule. ( I use Microsoft Excel).
Small notebook and pen to write down daily expenses.
Receipts kept daily from where you have spent money.

Step 1

Start keeping track of your expenses immediately. I started this process back in May and it was a real eye opener for me. For every red cent you spend on a daily basis you need to get a receipt for it or write down the amount, date and what was purchased in your notebook. I always keep all of my receipts because this makes it easier for me. If you are somewhere that will not give you a receipt just write it down in your notebook. Be very diligent about this process it is very important. Remember everything counts, bills paid, lunch bought, parking paid for, daily newspaper, etc. Now on to the next step.
Step 2

Create yourself some type of spreadsheet. I use Microsoft Excel for my monthly budget. It is fairly simple. I create columns for the date, location money spent at, what money was for and how much was spent and what category it falls under. Household, bill, entertainment, dining out, personal care, groceries, household repairs, animals, gas for vehicle, vehicle maintenance, etc. I then enter all of this information on each line. Here is what I mean.
DATE/ITEM & PLACE/MONEY/CATEGORY
Step 3

My spreadsheet automatically totals my $ column for me. After a month of keeping track of my spending I then go a step further and break it down into the various categories. At the end of each month I know how much I spent for each category and where I need to trim back at. I was amazed the first month at how much my family liked to dine out. This was a big waste of money for me. I have since then cut back drastically on dining out. It really helps to know exactly where your money goes to on a daily basis in order to cut back your spending.