December 5, 2016
It is true that other than the usual monthly bills and daily necessities, there is a lot more money that individuals spend on other things. Sometimes it is hard to hide from the temptation of purchasing some things at first sight. Cravings as well add to impromptu expenses that surround our daily lives and affect our family budget and emergency fund too.
If you add that to the other common expenses, you will realize that this sums up to a lot of money spent out there. However, the funny thing is that you might actually not be in a position to tell where each coin went whenever you spend your monies in this way. That is what makes accountability for every coin spent difficult to achieve, hence here is some insight that could help you in respect to this.
Gather all your financial statements
These include account statements, bills, and mortgage statements, among others. This is to help you realize what you have been spending your money on and what actually eats the biggest chunk of your monthly expenses. Therefore, the next time you get your financial statements, be sure to keep them safely so as to start off well as you try to find a way to monitor your expenditures and set reasonable financial goals as part of your family budget.
Monthly expenses list
This includes both fixed costs discretional expenditures as well. Included in these costs are utilities, rent, mortgage, car loan, which are some of the fixed costs and also expenses on clothes, haircuts, groceries, and the like, which feature as discretional costs.
Analyze your monthly expenses
Your expenses can be classified into various categories and this will help you to come up with and expenses worksheet. If you choose to use online platforms for this, My Spending Report will help you track your monthly expenses easily and automatically and you can distinguish your expenditures by marking them with different colors. Expenses are divided into the following categories.
- Fixed expenses – these are those that you incur every other month and remain the same all through. If you need to change any of them in any way, you need a major shift that may change your life greatly. This may in terms of such decisions as moving into your own house or changing your sleek ride to a cheaper one.
- Flexible expenses – these are those costs that are not standard or those that are subject to change from time to time. These include expenditures on utilities, groceries and the like. You can trim down on these ones by turning down the heater a little bit in the evening or opting for coupons for your purchases, among other things.
- Discretionary expenses – these are those which you have more control over and you can cut down on them at any time significantly. They include, eating out with friends, movie tickets, trips to coffee shops, among others. Eating from home or moving gatherings to a friend’s house can help you save big on the amount of money which you otherwise spend at a restaurant with family and friends.