And I know exactly what you are going to tell me: ‘I don’t want to talk about money as I don’t have any’.
..and this is exactly the reason I want to talk about this.
I am guessing now that you are working full time, but usually at the end of the month you wonder where your money went. To your surprise you have not bought anything for the house (sofa, etc) or for yourself (new shoes, etc), have not been to holidays or cinema.
So, where did the money go?
Today I want to encourage you to start tracking your expenses. What it means, you basically write down what you spend. Do it at least for the week. Take a note book, or do it on your computer, but just do it. I started this habit of tracking expenses more than 8 months ago. I cannot express how this changed my life. Now I know exactly where my money is going each month, and I am even able to save a little bit.
At the moment I have a spread sheet designed (on my PC) and my spendings are categorised into groups (bills, groceries, car expenses, etc). But if you are just starting, don’t bother with categories. At this moment you just want to know where you are spending your money and what you are buying.
If you do it over a course of the week you whole relation with money will change. You will notice certain patters and habits, and many of your questions around money will be answered (most of the answers you won’t like). You will realise all those minute spending (£0.99 here and there) which will amount to a serious amount (just over the course of the week. I also encourage you to specifically analyse your credit card spendings (I am guessing you have at least one). Keep all receipts.
If you do it, your whole financial life will change. You will appreciate more what you have and, probably the most important, you will know exactly how much money you have and spend.
So start today. Take a notebook or buy one, or use your computer. If you have a smart phone you can download (for free) expense tracking app. Do it your way.
To your happiness…