| Have you ever taken $20 out of an ATM and | | | | you spend on each category by dividing the total |
| wondered later where it went? Start keeping a | | | | for each category by the overall total. Following |
| daily spending diary to keep track of where your | | | | the example above, I spent 66% on food ($10.60 |
| money goes. Try it out for one week and you'll | | | | $16.10). |
| be amazed at how much you can spend on the | | | | Once you have completed your calculations look |
| little things like coffee, eating out and | | | | carefully through your analysis. Does anything |
| entertainment. Here's how to do it: | | | | surprise you? Are you spending more money |
| Take a blank piece of paper and create a column | | | | than you thought on small items? Small things, like |
| for each day of the week, Monday through | | | | coffee, drinks, cigarettes etc... can really add up in |
| Friday. | | | | a week! Just think, if you spend $3 on coffee |
| Put the piece of paper in your wallet or purse - | | | | every day, that's $21 a week or $1,092 a year! |
| somewhere where you can have it with you at all | | | | Identify these areas that surprise you and look |
| times. | | | | for opportunities to cut back on your spending. |
| Make a note of every single penny that you | | | | Keeping a daily spending diary is an easy way to |
| spend - This is very important, if you forget to | | | | take control over your spending and to identify |
| write down a coffee here and a soda there, you | | | | some less than desirable spending habits. Also as |
| won't have a complete picture of how you're | | | | an added bonus, by keeping a daily spending diary, |
| spending your money by the end of the week. | | | | you're already halfway there in creating your own |
| At the end of the week quickly order the items | | | | personal budget. Next week we'll explain how to |
| that you spent money on throughout the week | | | | set up your budget. In the meantime, |
| into the following categories: Food, transportation, | | | | congratulations on taking an important first step! |
| entertainment, clothing, housing and other. Next | | | | You're on your way to learning more about Your |
| add up your expenses in each category. Here's an | | | | Money and You. |
| example of one day: | | | | TIP: Use your daily spending diary as a savings |
| Monday | | | | tool. After one week you should be able to easily |
| Coffee - $2.75 Food: $10.60 | | | | identify some areas to cut back on your spending. |
| Bus fare - $3.00 Transportation: $3.00 | | | | The money you save will bring you one step |
| Lunch - $7.85 Entertainment: $2.50 | | | | closer to your goals of opening a business, saving |
| Magazine - $2.50 TOTAL: $16.10 | | | | for your children's education, purchasing a home |
| Next, find out what percentage of your money | | | | or taking a dream vacation. |