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Do you find you have $20 in your wallet one day and only small change
left the next. Do you often wonder why cash you have
set aside disappears so fast. To combat
this it is useful to keep an eye on the things that you spend money on
each day. However it can be hard to remember what you have bought
and how much it costs. A useful tool to use to track your daily spending
is a Spending Diary. Keeping a Spending Diary
is easy. All it requires is a commitment from you
in recording what you buy and how much it costs you.
So how do you keep a Spending Diary? There are a variety of ways
and you can record your spending in whatever way suits you best.
It could be as simple as keeping a piece of paper in your pocket or wallet
and record your daily spending as you go. Or use a notebook in a similar way.
When you buy something, write down the day, the item, and how much it cost.
Writing down your spending at the time of purchase may not be possible,
so an option is to keep receipts and track your spending
at the end of each day. The important thing is that you remember to include
all your spending. Even those you don't get a receipt for.
Another option, if you have technology at your fingertips, is to record your spending
on your phone or other portable device. Free downloadable Apps
such as 'Track My Spend', are available for you to use free.
Details of other downloadable Apps are available at the end of the 'Better
Spending Habits' module.
The options are endless! The key is to use a Spending Diary
in the way it best suits you. So what are the benefits of keeping
a Spending Diary? Spending Diaries can track the spending that you might not
usually notice.
For example, popping into the shop to buy a drink or a newspaper.
Or, the extra coffee you bought before work or uni, on top of the usual morning
coffee at home.
By keeping a Spending Diary and becoming familiar with these expenses
that you previously did not notice, you create opportunities to identify
spending leaks
and identify areas where you can potentially save money.
A Spending Diary can also assist you in setting up a realistic budget.
Or if you already have a budget, it will assist you with sticking to it and
avoiding budget blowouts.
So we have discussed what a Spending Diary is, different methods in keeping
a Spending Diary,
and how a Spending Diary can be beneficial. If you want to get started
on keeping a Spending Diary, keep in mind all the options available to you
and pick what suits you best.