Don’t know where your money goes every month? The solution to it is to start tracking your money so that you can have a clear big picture of your finance. Start tracking expenses for good money management!
We are so used to go shopping with friends and end up buying things that we don’t really need and seldom use, you will be amazed at the amount spent when it adds up at the end of the month.
It is better to track the money spent daily and in details (things like starbuck coffee $5, breakfast $3, bus fare $1.50, a can of coke $0.80, movie $8 etc) just record it down in a notebook or in your handphone when you spent your money.
At the end of the day, add up the money you spent for the day and you should have a rough idea how much you spend daily. Categorized them into categories like Food, Transport, Entertainment etc so that you know where the bulk of your money is spent on at the end of the month. For example the total spending for transport is $300, and taxi fare makes up most of it, you should consider cutting down on taxi and take public transport instead.
I started tracking my own expenses 2 years ago, recording down the money spent using my handphone. It is a bit tedious seriously. I found out that a lot of money is spent on movies as I was watching movies every weekend. I cut down to maximum 2 movies per month and try to watch it during weekdays when it’s cheaper.
These little savings adds up!