Just knowing where your money goes may be all you need to start spending less. You may even start saving more.<\/p>\n
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2. Track your spending and expenses<\/h3>\n
Start small by recording your spending\u00a0every day<\/strong>\u00a0for a period of time (at least a week). This way you can see all the money going out.<\/p>\n If you have some weeks or months with more expenses, then track over two weeks or two months. This will give you a more realistic picture.<\/p>\n Don\u2019t worry about changing your spending habits straight away. Just track day by day.<\/p>\n It might be easier to track with your partner or a friend: you can encourage each other and stay on track.<\/p>\n A phone app is an easy way to track your spending at the time you spend.<\/p>\n Some apps offer more options, such as setting spending limits and reminders, and seeing your expenses at a glance.<\/p>\n When you use a debit or credit card, every transaction is recorded for you.<\/p>\n You can view or download these transactions using online banking, or look at your hard-copy statements or receipts.<\/p>\n Write down every dollar you spend. Include the amount, item (or store name) and date. You should do this for both cash and card purchases.<\/p>\n Do this as you spend, or set a reminder to do it once a day, using your receipts.<\/p>\n At the end of your tracking period, look at your recorded transactions to see where your money is going.<\/p>\n You might find that just by being aware of your spending you start to spend less. Take a moment to ask yourself: Do I need this? Would it be cheaper somewhere else? This can help you think twice about buying something.<\/p>\n A good first step is to look at any small items that add up over time. Try cutting back on small, frequent expenses, such as takeaway coffee or lunch. This is a great way to start a savings habit. See\u00a0simple ways to save money<\/a>\u00a0for more ideas.<\/p>\n You could also see whether you could redirect this money, maybe to a\u00a0savings account<\/a>, an\u00a0emergency fund<\/a>\u00a0or your mortgage.<\/p>\n Look at all your transactions and highlight what are ‘needs’ \u2014 essential items you need to live.<\/p>\n This will give you a clear picture of what are ‘wants’. These are the things you could cut back on or live without to save money.<\/p>\n Seeing how much you spend on certain things can help you set a realistic limit for the next week or month. This can help you avoid overspending.<\/p>\n Knowing when regular expenses are going to pop up means that you can set reminders and put aside money to cover these payments.<\/p>\n Knowing where your money is going day to day is great first step to creating a budget. The next step is to see where it’s going over a month, then a year.<\/p>\n Having a budget can help you feel in control of your money, prepare for big expenses, and save.\u00a0<\/p>\n Please contact us on |PHONE| if you seek further assistance on this topic.<\/p>\n Source : Moneysmart gov.au June 2020\u00a0<\/a><\/span><\/p>\nHow to track your spending<\/h3>\n
Use a phone app<\/h4>\n
Look at your statements and receipts<\/h4>\n
Write it down<\/h4>\n
3. See how you’re tracking<\/h3>\n
See where you can save<\/h3>\n
Separate needs from wants<\/h3>\n
Set limits and reminders<\/h3>\n
4. Do a budget<\/h3>\n