How to Keep Better Track of Your Finances When You’re Trying to Get Out of Debt
Getting out of debt
When you’re in debt, it’s hard to see any relief in sight. It may seem like your money is gone as soon as it hits your bank account.
Getting out of debt requires perseverance, dedication, and proper monitoring and tracking of your spending.
Otherwise, you’ll just be spinning your wheels and getting nowhere.
To get your debt under control, you need a plan, and you need to know exactly where all of your money is going.
There are several ways to track your spending, but the key is to find a method that works for you and one that’s not too complicated, so you’ll stick to it.
Spending money is easy, but finding where it goes can be like finding lost treasure, and the best way to find lost treasure is with a good map.
Tracking where your money goes is your roadmap to getting out of debt and finding financial freedom.
Track Your Small Spending
Those small amounts of money you spend on coffee, a danish, or lunch from your favorite food truck can add up to large amounts of money on a weekly and monthly basis.
Save all of your receipts from small, daily purchases then total them up after two weeks.
You may be shocked at how much money you spend weekly on little things that cost less than a couple of bucks.
Use an App or Computer Software to Create an Accurate Budget
There are hundreds of apps and computer programs designed to help you track and budget your spending.
Keep in mind that some apps and software can be a bit tedious and a little complicated.
However, if you stick to using a debit card for your purchases, most banks and credit unions offer budgeting tools to help track your spending.
Save Money With a Credit Union
Unlike banks, credit unions like FCCU – First Community Credit Union and others offer better interest rates on savings, CDs, loans, and other financial services, and they help you keep track of your spending habits either through an app or online statements.
Once you know where your money is going and how much you spend on certain things like dining out, groceries, cigarettes, and other things, you can adjust to your budget to help you get out of debt faster. FCCU and other credit unions also have lower bank fees.
Track Your Spending in a Notebook
The time-honored method of tracking your income and spending in a notebook is an excellent way to track where your money goes and where you need to make adjustments in your budget.
Writing down every expenditure in a notebook is easy, requires no special skills or electronic devices, and is time-efficient.
For tracking your income and expenses, use a daily budget notebook that has entries for household, car expenditures, utilities, repairs, food, and other expenses, as well as extra spaces for miscellaneous spending.
Getting out of debt begins with tracking your spending habits and making the necessary adjustments to pay your debts first.
By cutting back on small expenditures and eliminating unnecessary purchases, you can get your debt under control and get your finances back on the right path.
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Category: Debt
