More On Tracking Your Spending

In a post yesterday I said how one of the first steps to being able to save money was to closely monitor your spending.

I’ve just read a post over at FreeMoneyFinance which looks at this subject and discusses how by tracking your spending you can budget and fix your cashflow. The process they propose you take is:

  1. Track your money
  2. Find the waste
  3. Stop the waste
  4. Redirect the waste
  5. Keep tracking

As the plan suggests, this process never ends. You must keep tracking your transactions, looking for any waste that can be stopped, and then put the money you would have spent to better use, such as by saving, paying off debt or investing for the future (remember the power of compound interest). Rinse and repeat.

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