So another month is over now....amazing isn't it? Before you know it, it will be 2013. The beginning of November is a great time to look at your monthly expenses in preparation for next year's budget.
Now, you might be thinking, wait a minute, November and December are not "normal" months. There is the extra addition of gift expenses and maybe even travel expenses. Well, realistically any month can have unexpected expenses. For example, in the last month we had medical expenses, a car repair bill and travel expenses (it was a blog conference and so worth it).
If you already track most of your expenses, now is a good time to review the expenses you are incurring so that you can adjust your budget for 2013. It is a lot easier to start now, than to wait until January to put a budget together. It is as simple as getting a small notebook or using a budget app on your phone. Start tracking what is going out by category.
List out everything you spend.
Yes, everything.
I know that a $3 latte does not seem too relevant, but multiply that by the approximate 21 working days in a month, and that is $63. If you add weekends, it is even more.
If you commit to doing this just a couple of minutes a day, at the end of the month, you will have a picture of what you are spending. Track all the money your are spending on groceries, eating out, sport/club fees, coffee fixes etc.... This is the only way to get a clear vision of where your money is going.
When you pay your bills, list out what each bill cost or print out the bill payment page if you bank on-line. We will do this together. It will not be painful, it will feel better to know for sure where your money goes. If you skip a day I won't tell, just take the first step.
In a near - future post I will share the method that I use to track expenses.
Do you keep a budget? If so, how often do you review it?
anotherjennifer
I'm not good with budgeting, but my husband is. He's a CPA and keeps track of everything. With that said, there's always room for improvement. I've never tracked a full month of expenses before. I'm sure it would be eye-opening. Thanks for the tips!
organizedisland
Ah, with a CPA in the family I am sure you are on a budget 🙂
thrivingwives
Ditto to what anotherjennifer said... husband keeps track of the budget in my house, otherwise I get overwhelmed! These are great tips though, I'll talk to him about our November expenses and see what we come up with 🙂
Strive to Thrive,
Nic
http://www.Thriving-Wives.com
organizedisland
Glad someone is keeping track - that is the important thing. Thanks for stopping by Nic!
Sharon
Yes! I do this and it is so eye opening! The little expenses really add up. I've done it for each and every month and it's so true that unexpected expenses come up EVERY month....like clockwork...
organizedisland
Good for you! Isn't it amazing? I do not do it every month, but I do keep tabs once a quarter. It helps me stay on the right track. Thanks for your comment Sharon!
jehdld
I log our bills as I pay them each month but am not so good about the "extra" stuff. Logging the bills though helped us go back and easily track things like which months we were spending more on the electricity bill. It's come in handy quite often. I just use a simple excel spreadsheet.
organizedisland
Isn't it great knowing where the money goes? We did a revamping of what we spent on various categories and cut down on spending. I am with you too on the simple excel spreadsheet.
BB'sCulinaryJourney (@MsBibiB)
I never was a budget person, but I started keeping track and budget few years back when hubby lost his job overnight....it was such an eye opener. Our budget then was so minimal and sad, but now I review it every 6 months cause our life is changing so rapidly.
organizedisland
Sorry to hear about your husband's job. We have been through that too and also cut way back on expenses. I'm glad your life is changing (hopefully for the better) and you are monitoring your budget.
Leslie
We’re so bad at tracking our expenses, and for so many reasons! Thanks for the kick in the butt!
organizedisland
We all need a kick now and then! Thanks for stopping by Leslie!