Where Does My Money Go?

If you are like most people today, you just don’t know where your money goes. Here are a few tips for good budgeting:
•Buy a small spiral notebook to jot down 100% you’re your expenses for one month.
•At the end of the month, put an “M” for musts next to expenses like electricity, food, car payment, gasoline, mortgage or rent, car or home insurance.
•Put a (D) next to all discretionary expenses (those that do not absolutely have to be spent) like clothes, meals out, entertainment, magazine subscriptions, etc.

Most people are surprised by the amount of money they spend on unnecessary items.

Do you spend more than you make? If Yes…
•Eliminate 75% of “D” expenses immediately.
•Target a 10% reduction of “M” expenses through conservation of energy, food coupons, better insurance rates, etc.
•Keep tracking expenses until you bring expenses in line with income.

Your personal goal should be to live debt free on 80% of your income. The other 20% should be put away for your future.