Saving Series: Tip 1

TIP #1: TRACK YOUR SPENDING FOR A MONTH

The first step I took to get my finances in order was to grab a stack of paper and a small notebook and to start writing down every single cent that I spent for a month. I kept the paper out on my desk at all times so it was always ready, and so that I wouldn't forget to write things down. I also kept the small notebook in my car so that I could write down expenses from things like gas and fast food. I copied those onto the larger paper at home.

I did this for a month to get an idea of what my spending really looked like. I made columns: one for necessary spending, such as rent, insurance, gas, bills, etc. Another column was for food, both groceries and eating out. Another was for everything else. I also jotted a note next to each amount I recorded saying where I spent it. It looked something like this:

NECESSARY	FOOD	EVERYTHING ELSE
$430- rent	$35- Target	$12- eyebrow wax
$50- OGE utilities	$8- Chipotle	$22- Kohl's
$55- insurance	$22- The Mont

At the end of the month I totaled the amount of money I earned at my job. Then I totaled all of the columns in my spending chart. I subtracted my spending from my income and got a concrete, exact number of how far beyond my income I was actually going. This gave me a real starting point from which to figure out a realistic budget that I could actually maintain.

So! Grab yourself a notebook, a spreadsheet, a dry-erase board, a can of spray paint-- anything that works for you, and start tracking. Write down everything, even if you're a little ashamed after you've splurged. If you're not honest from the start, you'll create an unrealistic chart, which means an unrealistic budget. Write down your bills, your food, what you leave in tips, all of it. Also, keep track of what you earn. Keep it all in one master chart. At the end of the month, total everything and see if you're below or beyond your means. This will be your starting point.