A different take on an old challenge, seeing where your money is going

People are still in the “savings” mode or at least they want to cut down on expenses. Usually people dread the old “tracking of expenses” for a month, they say it is too tedious, too time-consuming…..too honest….too painful, etc. Don’t do it then, what I challenge you to do is go to your bank statement and/or Credit card statement that have already happened; you will get an honest, true reading. Circle all the “wants” you had done for the month. Add it all up, see if you could cut that number by 50% or 25%, apply that money to your emergency fund or paying down debt and you are in business. Go one step further and make yourself feel better. Dig out a statement from say 2006 or 2007, do the same exercise, see where you were vs. where you are today. I presume you have already cut those expenses over the last couple of years, but if you are in need of shaving off more, this is a more concrete way of doing it. Remember to be honest between a “want” and a “need”, people like to justify and convince themselves that one becomes the other. You just may have an “AH-HA” moment doing this exercise.

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~ by debt2dreams on September 23, 2009.

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