Moneyrama: Keep a spending diary

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In the previous Moneyrama we talked about priorities and about spending money on things you don’t really need. This time we are going to look at keeping a spending diary.

Keeping a spending diary is necessary if you want to make wise financial decisions based on actual facts, not guesses. You will be able to see exactly what you spend money on. You may be shocked to see how much you spend on things that are of low value and having the figures in front of you will make it easier to transfer that money to things you really DO want.

When your correspondent (that’s me!) first started keeping a spending diary over twenty years ago, he had a job, but he had zero savings. The diary made him aware of how poor some of his choices were. And when his diary was taken and read by his mates, the embarrassment was sufficient to make him reform. Once he had become conscious of his spending, despite four years on Austudy and eighteen months on Newstart, he actually managed to save a small amount each week, something he could not previously do even on a full wage! All because of that little notebook he kept in his top pocket!

You can even find spreadsheets on the net that ready-made to help you keep your spending diary. This will help you turn your spending diary into a SAVINGS diary as you watch your money grow. When you get to $16,000 you will be able to purchase a Fiat Pop 500, in your favourite colour: “Mint Milkshake,” in cash! Go for it!

-Warren Heggarty

Source:

www.moneyminded.com.au

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