Where are you spending your money?

   Do you think you could save some more money now for a brighter future?

   Many of us look at our current circumstances and believe that we’re stretched thin as it is. The moderate savings we make each month, that’s all we can afford. When we’re asked to find a little bit extra, our initial reaction is, I can’t do that.

   How well do you know your spending habits? Do you know where you are spending your money now? We often have a general sense, but when we get into specific details of where each dollar goes, the results are often eye-opening.

Get to know your spending habits.

   Becoming aware of your spending habits is quite easy these days, with the majority of our transactions occurring through credit cards and electronic payment methods. It is a simple, and not overly time consuming process to look at last months statements and learn where you are spending your money. 

   That knowledge alone can help you make better financial decisions in the future, and may even uncover some areas for additional savings.

   But you can take that process one step further, by becoming proactive versus reactive to your spending. 

Becoming Proactive in your Spending

   To become proactive, you need to be putting thought into your purchase decision, and what that means, before you actually swipe your credit card. One highly effective strategy to do this is to carry around a small notebook, and before every purchase write down what you are spending on, and the amount. This notebook will put a small interruption between the usual tap-and-go buying that you are habitually used to. That brief pause gives you time to reflect, do you really want or need that candy bar or bottle of pop?

   Our financial goals are usually not derailed my large decisions, rather they suffer death by a thousand cuts. It’s the small, habitual purchases that we make that robs us of the extra few dollars each week to contribute towards our financial goals. By tracking, especially proactively by using a notebook, you take back some control over your wallet. That small, powerful step puts you back in charge of your financial destiny. Financial freedom is yours for the taking, if only you get out of your own way.

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