The first step is to list every expense you make in a month, every payment, all accounts, all the bills, so nothing that comes out from your bank accounts is forgiven. Once looking at this amount at the end of a month, you’ll ask yourself how come you spend so much and what behaviour can you change to get a different result. These are a couple of seconds of questioning you didn’t ask yourself before your compulsive buying decision, which also will be see on you budget. More, by getting your monthly expenses, you’ll remember that you have important amounts that fly away each month, seeing that you’re not aware of that!
How can you automatically reduce your expenses?
Do you really need that expensive phone deal? All the useless TV channels that cost so much? And so on… Other advantage: by following your budget, you always know where you are so you have no reasons to be at discovering, or live with your financial banker’s sanction. You can also easily see if your bank didn’t make any mistakes. The few time you take writing down your expenses already brings you more money!
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- Classing expenses in categories.