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How to Stick to Your Budget
Managing Money Using a Journal
by David Byers
Description: Having a tough time keeping track of your money? Keeping a journal is an easy way to follow your spending and make changes to your spending habits. Learn how to efficiently use a money journal to better organize your finances.
Money, you can't escape it! It is why we work, how we support our families and what we spend to have fun. Although money is so intertwined with our lives, it doesn't mean it has to be an added stress. Good money managing techniques are important to leading a healthy life. Luckily, it's as simple as keeping a journal.
What is a Money Journal?
A money journal is a great way to track your spending habits, both good and bad. The idea is simple; each time you spend money, record how much and where.
Who Needs a Money Journal?
If you're in debt or have trouble making payments at the end of the month, a money journal is perfect for you. If you often wonder where you spend all your money, a money journal will help you. If you simply want to practice good spending habits, a money journal will teach you. It is a good idea for anyone, however, will be more beneficial for some than others.
How Do I Stay Organized?
- The journal! You want to consolidate the information to one medium, but there are several options.
You can keep a small notepad with you and write down each purchase you make. Although this takes some work, it's the easiest way to track any cash spending you make. (*Tip - Transfer all the data from your notebook to an excel document. This will make it very easy to compare day to day or month to month.)
- If you use a credit or bank card, set up an account for online banking and track each transaction online.
- The iPhone has an application for tracking your spending habits.
How Do I Use the Information?
Break down the data into several categories based on needs and wants. Things like groceries, rent and gas are usually needs. Fast food, games and electronics are probably wants. Only you truly know what your needs and wants are.
The bulk of your spending should be on "needs". "Wants" are not necessarily bad buys, but should be limited.
Keep an eye out for impulse buys. Candy at a gas station, a dvd at a checkout stand and other little trinkets are probably last second decisions and wants, not needs. If you see a lot of those purchases in your money journal, you know you should make some spending habit changes.
Growing with Your Money Journal
Ultimately, it is up to you to control your spending habits. The money journal is a simple way to show you where your money is going. Once you can see the bigger picture, you will know where to make changes. If you are saving up for a vacation, you can look through your money journal to find some "want" buys you should avoid and start saving money.
Extra Journaling Tips to Benefit Your Life
Keeping a journal isn't hard. You can even do it online. I strongly encourage you to create a journal and begin improving your life as soon as possible. For more journaling ideas and tips, visit my website at http://www.iheartjournals.com.
Article Source: http://EzineArticles.com/?expert=David_Byers
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