How Tracking Expenses Can
Save Your Money

Saving money with you current income seems to be imposible! From my personal experience I can say tracking expense CAN save you a lot of money. Have you ever heard or maybe even said: ‘I can’t save money, because I make too little’. That was exactly my words a few years ago.

I remember that feeling when I started to make money and live independently form my parents. That was amazing! You feel free, exited and so happy that you earn money and spend how much you want.

And I spent everything I earned! I paid for my rent, bills, bought cloth and things I didn’t really needed, met friends for coffee, ate out... As I said it was amazing feeling to pay for everything with my own money. At that time I didn’t have any credit card, lived within my means and was happy. Until a very special person in my life asked me a few questions that changed my way of thinking about money. The questions were: why couldn’t you save money, where did you spend your money, you earn enough to put into your bank account a few hundred of dollars where did your money go? And every time he asked me these questions I either didn’t have anything to say or I found a lot of excuses such as I have to pay rent, I have to pay bills, bought food, etc. But the thing is everyone has to pay it and no matter what your income is there are ways to save some money.

Time passed till I realized I started to see the spending problem and not ability save money. The same person who presented the issue to me recommended tracking my money to see where it goes by simply writing down every purchase. And I did. I track every single dollar, every penny I spent every single day for a months. At the end of the months I analyzed all purchases. I was amazed and I clearly saw where I wasted my money. Mostly that was food and coffee and then little thing I didn’t really needed but bought because I liked them or I felt as I need to buy it as a little treat. That’s well known latte effect!

I continued tracking for the next six months trying to cut off unneeded spending. It worked for me really well. Every time I was buying something, even a cup of coffee, I asked myself if I really needed it. And often the answer was no! I could live without an extra cup of coffee which I bought because I always did it or because there was time untill school started, friend came or it was to cold or hut outside. There were always a lot of excuses. Before I started to make conscious decision before buying anything and thought how it would affect my budget.

I know how it is hard to believe that you can save money with your current income. If you only you try you'll see that itt works.

We often don’t see the problem and ways to resolve it until a family member or a close person in you life would point it. Even then we often stay blind. That’s the way our mind works. But I hope you have this person in your life and you'll be open to recomendations and asdvice he'll offer top you!

Today there is free software for small electronic devices and laptops to help you track you spending.

What is that that you keep wasting your money on and don’t realize? For me it was food and coffee. Are these magazines, cosmetics, comics, computer games, movies, women, shoes… for you? What else can we waste our money on?

Updated: January, 2 2012