Keeping track of your hard-earned money is important. Are you aware of your spending habits? Do you keep track of large and small purchases?
Keeping track of larger costs such as rent or mortgage fees, utilities, and vehicle expenses are important, but how much are you spending on food, shopping, hobbies, etc? When working towards saving for your future, the little costs can be a determining factor in your goals. Here are some tips to track and create self-awareness of your spending.
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Keep track of everything! - Whether you decide to write your expenses down, create an excel document or download an app for your phone, make sure to track it all, even something as small as a $2.00 coffee. Check out this blog by Nerd Wallet reviewing the best budget apps of 2021.
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Categorize your spending and determine your needs and wants - When budgeting, it is essential to ensure you can cover your basic necessities such as grocery costs, home costs including rent or mortgage fees, taxes, electric, heat, gas, and water, car insurance, repairs, gas, etc. Don’t forget monthly subscriptions and fees such as wifi, cell phone bills, video streaming (Netflix, Amazon, Crave, cable) music streaming (Apple Music, Spotify) gym or sporting fees, everything adds up. Once these expenses are totaled, categorize your want spending such as restaurants, take out, coffee, alcohol, hobbies, shopping, travel, gifts, health & beauty expenses. Whatever your needs or wants are, remember - tracking the details matter!
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Track your cash! Do you have a side hustle that brings in cash? Whether selling on a Buy & Sell, earning tips, or something as simple as having a garage sale, be sure to add it to your income and track what you spend it on.
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Create Monthly Goals - do you have events in the future you know you will need to splurge on, such as weddings, traveling, home improvements? Having your detailed tracking will help you determine where you can save money this month to save for those more expensive items in the future
Now that you have some tips to create your detailed budget, use this knowledge to become more aware of your spending habits and ultimately budget for your future.
Is one of your goals for the future to invest in real estate? Find out here how you can save thousands when you become a homebuyer.
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