There is one thing that annoys me more than anything and it is something that I had to learn the hard way. This is when people come to me and they realize they have no idea where their money is being spent and what they have spent it on. I have a challenge that I make all my clients go through and it will help anybody out there to get a grip on what is really going on with their finances. Here is the financial advice you need.
You need to take the 30 day challenge
This is a challenge where you literally keep a log of every dime you spend. It does not matter if it is as simple as putting a quarter into a gum ball machine. Even this has to be something that is tracked. This will give you the picture of what you are spending your money on.
After my clients do this I have seen everything from a budget that includes 40% of the income going towards alcohol and food out at bars and restaurants to people that spend over half their money on items from auction sites. It is amazing the things that people find to be important when they tell me they cannot find money to save each month.
It is important that after you see where your money is going you categorize it into what is necessary (i.e. bills, food, transportation, etc), what is not necessary, and what you can cut back on. If you spend hundreds of dollars out at bars and restaurants every week, then maybe you can cut that in half and still enjoy your time out, but have some money to save.
This is just one example of what you can do to help you figure out where you might be able to make some cuts so that you can save money. It literally could be as simple as making your morning coffee at home or taking your lunch to work with you. It can be amazing where you might bea ble to find the money you need to save.