Of course, there’s nothing wrong with the traditional method. If you find the allure of inky fingers, green eyeshades and sleeve garters irresistible, go for it.
Similarly, if you’re an Excel expert, you can go the spreadsheet route. However, those options feel slightly dated when you can download a free app (most have paid-for premium options) for your smartphone that will do the hard work for you. Search for “best budgeting apps” and read some reviews to find the one you want.
That work primarily involves breaking down your discretionary spending into categories and sub-categories so you can see where your money’s going. Those might include:
- Lunches at work
- Coffee-shop purchases
- Entertainment — Cable TV subscription, movie theater and concert tickets, newspapers and magazines and non-work books
- Entertaining — When you host family and friends for lunch, dinner, drinks or a barbecue
- Eating out and takeout — Fast food, fine dining and home deliveries
- Booze— Both in bars and purchased for home
- Clothes — Essentials and the items with designer labels
- Gas and car maintenance/repairs
- Vacations and short breaks
- Gym, sports, golf and country club subscriptions
- Phone, smartphone and internet costs — Don’t forget equipment upgrades
Depending on your hobbies and lifestyle, there may be a few or many more categories. But your objective is to identify where every single cent you spend goes.
The information contained on this website is for informational purposes only and is not an advertisement for products . The views and opinions expressed herein are those of the author and do not reflect the policy or position of Brokerage. Source: The Mortgage Reports