To monitor how much money you are spending, you should write down every penny that is coming out of your wallet everyday for a month. Here are a few tips on how to go about it:
1. BRING A SMALL NOTEBOOK. Write down everything you paid for on it everyday. It is called your EXPENSES NOTEBOOK.
2. USE YOUR CELLPHONE. If you find carrying a notebook is uncool, you can use your cellphone to record your daily expenses. Then when you get home, copy the entries to your expenses notebook.
3. KEEP RECEIPTS. Keep every receipts you have until you have already written them down on your expenses notebook.
4. CATEGORIZE THEM. You can put categories on every item you spend on like FOOD, TRANSPORTATION, ENTERTAINMENT, COMMUNICATION, CREDIT CARDS, EDUCATION, and many others to make the monthly summary easier.
5. CHECK YOUR NOTES FROM TIME TO TIME. You are making this expenses notebook for yourself and not for anyone else. So check them from time to time and see if there are things you bought that were really unnecessary and other expenses you know you can cut off.
6. MAKE A SUMMARY. By the end of the month, summarize all your entries based on the categories you have created. Determine which has the highest amount and try to find ways on how you can lower them.
I've been doing this for 4 months now and it help me stick to my budget. The idea here is to have few entries with small amounts everyday because it means you are not spending much. Make this a habit.
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