Hello this is Britt Castro and welcome to my very first Money Byte…
Money Bytes are just short videos where I will share with you finance tips, strategies and tools to help you gain clarity around your money and become a financially wise woman! If you like what you see, make sure to subscribe to my YouTube Channel.
Okay, on today’s Money Byte I want to address Spending. We all do it, but how many of us actually track our spending every month? I hear a lot of people say “I have no idea where my money goes every month!” That is scary to me. You need to know where you money goes. If not, chances are a lot of it may be falling through the cracks.
I suggest tracking your expenses regularly. You can use all sorts of online tools, such as www.mint.com, www.Learnvest.com or even a good old pen and paper. You can start by tracking your spending for the next 90 days. Every time you spend money, track how much you spent and what it was on.
Then after 90 days go back and review all your expenses. This can help you identify any places you many need to cut back on or modify. Keep in mind, even the smallest changes to your spending can help you save more money over time. For example, let’s say you notice you spend $10 every day eating out for lunch. If you decide to bring lunch and save $10 by not eating out for 3 out of the 5 workdays, then you will save $30 per week. Now let’s say you invest that $30 you are saving by not eating out in the S&P Index…over 15 years that can potentially equate to almost $50,000! That is a lot!
So you see, even the slight changes in our spending habits can help us save and invest more money over time. Remember you need to enjoy your life today as well so make sure you just find the right balance between living for today and saving for the future.
Call to Action– track your spending for the next 90 days.