Daily Spending DiaryBy Kevin SalinasIt’s quite obvious that smart investing can increase the amount of yourreturn. We all heard the saying “It’s not how much money you make, its howmuch you can save that counts.” You reap the benefits with financialplanning; monitoring your daily spending is an important part of the process.The first step to saving should be to analyze your spending and allocate amonthly budget. Write down a list of your common monthly expenses andsubtract that from your monthly net income. The money left over is to bewisely spent. Keeping a daily spending diary allowed me to stick to mybudget.Calculating your daily spending should be mandatory. At the end of the dayyou should be able to calculate what you spent. This helps you become incontrol of your finances. Being able to see exactly where and how muchmoney is being spent will help improve your overall financial spending.Keeping a detailed record daily, weekly, and monthly will also give you thebenefit of staying within your financial means.When you are able to save money, rather than spend it, there is a financialbenefit. Having a daily spending dairy allows you to manage money byreducing your spending habits. Some bad habits include shopping forclothes, buying alcohol, fast food, or any excess spending that is really a
“could do without.” Being able to turn a bad spending habit into to abeneficial savings can increase your finances and outlook towards life.If you have any liabilities you should pay more than the minimum paymentand pay them off as quickly as possible. Any credit card debt should also bequickly paid off so that you are able to save on any interest charges. Thelong term benefits of reducing extra spending and eliminating debt isincomparable. Life is less stressful without the financial burden of owingmoney.Everyone has an urge to spend money so it’s important that we control ourspending in order to live within our means. To do so keep track of the thingsyou have. It’s also important to have an itemized list of your possessionsand for insurance purposes. By doing this you can avoid buying things thatyou already own. Temptation can be difficult to resist but you should reallyquestion yourself every time you are about to buy something. Think about ifthe item is a need or want? The chances are, most likely you can do without.Minimize your spending with substitutions. If gas prices are costly seekpublic transportation. Instead of eating out, buy groceries for the week.There are several ways to save money. Another way is by planning freeactivities such as going to the park or visiting family. Avoid using creditcards and only carry small amounts of cash to avoid over spending. All ofthese tips will improve your financial situation.
The economy changes with time. Interest rates are subject to changewithout consent. Being able to be financially secure during and for theseunpredictable situations is something everyone should consider. If interestrates begin to increase and inflation causes the cost of goods to rise, manyhouseholds may struggle without financial planning.