It is a small thing, really. I ask it of people that I work with and even do it myself occasionally. Sounds exciting? Not really! The thing is writing down all your expenses. Yes, it is a small thing but it can have a great impact on your money and how you spend them.
Writing down all you spend gives you a picture of what you are spending your money on. At the end of the months you can go through all your posts, organize them into categories and see exactly how much you spent on food, gas, clothes, etc. Often the picture is quite shocking….
The other great advantage of writing down your expenses is, that after a while you start to think how that purchase is going to look on your list and sometimes the fact that you have to document the purchase makes you not going through with it. Simple psychology 🙂
It can be done in any way that works for you. Some prefer an excel sheet, some an app on their phone or computer and others use just a simple piece of paper. It doesn’t really matter as long as it is done.
But the thinks I pay for with my credit card are documented that way, so should I also write those down? Yes! Even though the payment is with the credit card, it is still important for the psychological process to have the purchase down on paper. (By the way, don’t forget to document the payments that go automatically off your bank account as well.)
By doing this seemingly small thing, you will get a picture of exactly what you are spending your money on. I am sure that there will be surprises, but that is a good thing, because the more you know how you spend and on what, it will be much easier be to make changes.
Have fun 😉