If You Want to Cut Your Expenses, Start by Tracking Them.
At the end of each month, you run out of money and wonder where it all went. You decide that you are going to finally save this month. Before you start cutting costs, first track where you are spending your money.
As personal finance site Retire29 explains, if you don’t keep track of your spending, it will be difficult for you to know exactly what to cut back on. It is easy to feel that we know where to make incisions. After all, all luxury is obviously the biggest leak, right? Just eat less and your budget will get better! However, if you spend the same amount on food as you spend on eating out, changing that rule won’t help. You need to track your expenses to know your weak points:
I am assuming that you want to be in control of your finances. Focusing on money, as 64% of Americans do, is not the best option. Control is the first step to relieving this stress, and knowing your numbers is the first step to establishing control. Once you know what you are in control – spending, saving, investing – then you can take action.
Keeping track of every dollar can be tedious (although easier if you use the right software ), but knowing where you are is important. If you can’t pinpoint a specific area of your budget and say objectively, “This is where all my money is spent,” you are not ready to decide what needs to be cut.
Before you set foot, first look where you stand | Retire29 via Rockstar Finance