Do you earn a good income and at the end of the year ask yourself “Where did all my money go?”. I can see you sitting there nodding right now. You can take comfort in knowing that you are not alone as this is a very common puzzle for people. “Where does my money go?
So where does all your money go? Surely you can’t have spent it all …. or have you?
The trick to being successful with your money is to have control over your money. To do this you have to know where it is going. If you don’t keep an eye on it, it will run away and disappear into a black hole. There are holes in your wallets and purses that you probably just can’t image being there. You have to treat each piece of money like a piece of gold that you don’t want to let go of.
Here are some clues for you to consider so you can start to keep an eye on where your money goes
1. Try and identify what portion of your money is going on fixed expenses (such as bills and loan repayments) and what portion of your money is going on lifestyle / discretionary spending (such as groceries, entertainment, eating out, clothes)
Note down the expenses that you have to meet; such as bills, rent, mortgage payment, loan repayments etc Note down the expenses that are nice to have but aren’t absolutely critical. We will call these lifestyle / discretionary expenses (such as groceries, entertainment, eating out, clothes). How much of your money is being spent on lifestyle / discretionary expenses? (Lifestyle / discretionary spending is the area where most of the runaway money escapes from). How do your lifestyle / discretionary expenses compare to the money you are spending on fixed expenses / bills? Look for ways to reduce your lifestyle / discretionary expenses
2. Spend the time doing up a proper budget which will look at your likely future income and expenses
A budget should be a thorough record of all of your expenses across all areas such as fixed bills / commitments and lifestyle / discretionary expenses Ensure your budget is realistic and achievable Limit what you spend on lifestyle / discretionary expenses as this is optional spending and an area that you can get carried away on Allocate money in your budget for all foreseeable expenses and set some money aside for emergencies Don’t forget to provide money for items such as replacement of capital items such as buying whitegoods, repairs / renovations to your home In your budget put a portion of your money aside for savings In your budget include provision for funds to meet any goals If your budget runs into negative / deficit, then you will need to cut down your lifestyle / discretionary expenses or other optional spending until you reach at least a break even point
3. Look at your money habits
Try and identify particular times where you might be a bit frivolous
When you are in a particular mood When you have occasion to celebrate When it is someone’s birthday During particular times of the year Over festive seasons – Xmas / Easter When on holiday / away for weekends Out with certain friends / family members
Think about your pattern of spending
Do you spend first and deal with the consequences later? Do you shop around for a bargain? Do you stop and think / sleep on it overnight before rushing into a purchase? Do you ask for discounts off standard prices
4. Start to keep a record of what you are spending
Carry around a little note book and make a conscious effort to record what you spend cash / money on over a period of time Fill in your notebook on a daily basis updating it as you spend cash / money Review your notebook at the end of the day / week Keep all your receipts and dockets in one central place Use a spreadsheet to track your expenses and bills Track your total expenses over a week, fortnight, month Really keep an eye on your cash as this is what will vanish – you break into a $50 and before you know it you have coins rattling around in your wallet / purse Analyse what you have recorded and try and identify particular patterns / habits Make a particular note of any areas you are overspending Don’t stop doing this until you can say with confidence that you know where your money is going
5. Look for ways to stop the leakage such as
Following your budget Using money jars / envelopes for different expenses such as groceries, eating out, hairdressing, clothes etc Using separate bank accounts for different purposes such as bills, lifestyle, holiday, savings etc Setting up automatic transfers to distribute your pay to separate accounts for different purposes such as bills, lifestyle, holiday, savings etc Giving yourself a set allocation for lifestyle / discretionary expenses each week Being strong and if you spend all your money one week waiting it out until the following week Paying cash for items and not using credit / debt Limiting the purchases on credit cards
6. Remove access to temptations
Take the credit card from the wallet / purse Reduce the limit on the credit card Only keep minimal funds in accounts with debit card access Don’t draw out large amounts of cash and keep it in your purse / wallet Stop access to any savings account via debit cards Remove some accounts from internet banking access Have your savings account with a different bank so you can’t get internet access to it and put the money in your spending account
By: Heather A Wood
Posts Tagged Saving Money Tips
Okay, we all know that we should exercise but what is it that gives us that extreme sense of lack of motivation? Interesting question this one isn’t it. I guess we are all rather prone to prefer to kick off the shoes, grab a cuppa and sit down in front of the TV / computer instead of grabbing out the joggers and pounding the footpath or running around a tennis court.
However, if you start to get into sports you will realise how much of a difference it can make to your whole well being. You will start to feel more enthusiastic and alive and this will flow across into other areas of your life. Your overall attitude to a multitude of things will be lifted up to new levels.
Being active also gives you additional benefits such as keeping your body healthy (saves on medical bills and doctors visits) and giving you something to do (saves you spending money on expensive forms of entertainment). Get into sports today by dusting off the joggers, digging out your swimming costume, grabbing a tennis racket or cleaning off your golf clubs. Participating in a sporting activity can not only keep you fit and healthy but provide you with hours of entertainment for generally a small fee.
Here are some clues to get you started:
1. Choose what sorts of sports you might be interested in
Jogging / Running / Aerobics Tennis / Squash / Badminton Football / Rugby / Soccer Basketball / Netball / Softball Cricket / Hockey / Croquet Lawn Bowling / Ten Pin Bowling Dancing Cycling Swimming / Diving / Aqua aerobics Golf Horse Riding / Polo Canoeing / Kayaking / Rowing Yoga / Pilates / Tai Chi / Gymnastics Track and Field Rock Climbing / Abseiling Boxing / Martial Arts Fencing / Archery Weight lifting / Wrestling Skateboarding / Rollerblading Skiing / Snowboarding
2. Think about who might be able to join you (often if you are committed to go somewhere with someone else you are more likely to do this activity than if you have to go alone)
Family member Work Colleague Friend Neighbour Business associate Member of a club / group / church you are in
3. Check out your local area to see what sports clubs / associations are located in your area that offer your chosen sport?
Surf the internet Visit your gymnasium Read the local paper Ask your local school Check the advertising outside your local hall Ask at your local sports centre / youth club Check with your council Visit your local community centre
4. Decide where can you participate in your chosen sport
park cycle track running paths velodrome sports field council pool gymnasium bowls club local hall sports centre dance studio local school ski fields skating rink bowling alley squash / tennis courts home friends / neighbours home work
5. Establish the costs for your chosen sport
Membership / club fees Participation / entry fees Sports equipment (purchase / hire) Sports uniforms / shoes (purchase / hire) Travel costs Food / drinks whilst undertaking chosen sport
6. Consider organising a group
Get your work colleagues to accompany you on a walk / jog around the block at lunch time Tee up your neighbours to all go for a walk / jog two or three afternoons / mornings a week Advertise at your local gym / school / sports centre to set up your own running / cycling / walking / swimming group where you meet at a set location and all head off together for 30 mins / 1 hr Look at the groups you currently belong to and can you add value to any of these groups by setting up a running / cycling / walking / swimming group as an offshoot Talk to your local council / community centre / sports centre for assistance and promotion in kick starting a new group off in your area
7. Get out there and give it a go
Don’t procrastinate – start working on this today Set up a routine for your sports activities Commit to your routine by marking time in your diary / calendar Consider hiring equipment instead of buying the equipment at the start, just in case it doesn’t work out for you Set money aside in your budget to cover the costs for your chosen sport Set a goal around your sport as this can keep you motivated to keep going e.g. Build up to a certain speed with cycling / rowing Swim a certain number of laps of the pool Jog for a certain period of time Learn a new dance routine regularly Score a certain score Touch your toes, do a back bend, do the splits
If you haven’t done much exercise lately, just ease into it gently – one step at a time
Detective Heather Wood is Managing Director and writer for Money Detective Pty Ltd.
Money Detective can help you with all of your money troubles. From our website full of factual information and articles, to our one on one personal money coaching, Money Detective can help you with all aspects of money management. Sign up for our Newsletter today and get yourself 6 free Money Clues http://www.moneydetective.com.au.
To discover over 600 different ways that you can save more money visit our Savings Money Tips section of our website http://moneydetective.com.au/budget-and-savings-tips.
© Money Detective Pty Ltd 2009
Article Source: http://EzineArticles.com/?expert=Heather_A_Wood
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