Contents
Expense-Cutting Basics
How to Track Your Spending
Money-Saving Websites and Techniques
How to Cut Grocery Expenses
How to Cut Utility Expenses
How to Cut Home and Garden Expenses
How to Cut Clothing Expenses
How to Cut Entertainment and Dining Expenses
How to Cut Transportation Expenses
How to Cut Phone and Computer Expenses
How to Cut Health and Beauty Expenses
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How to Track Your Spending
Before you can cut your expenses, you need to know where your money’s going in the first place. There’s no magic formula; tracking spending requires that you diligently take note of all of the money that passes through your hands. You must write down every expense in a ledger at the time of purchase, stash receipts in a designated place to record them later using a spreadsheet or personal finance software, or make all purchases with credit or debit cards and check those statements carefully.
Once you have a record of monthly expenses, your next task is to group them into categories (e.g., gas, groceries, clothing) and set a spending limit for each—for example, $200 per month for entertainment and dining out. There’s no substitute for self-discipline, but there are a couple easy ways to hold yourself to your budget:
- The cash diet: One method is to designate one enve-lope for each major category of expenses and dole out a specific amount of money into each envelope. When you reach the end of your monthly clothing cash, for example, you would have to exercise some self-discipline and leave the mall. Any leftover money can roll over into the following month’s allotment.
- Keep a tally: Another option is to carry a ledger with each page devoted to a certain category of spending. On the top line of each section, note the budgeted amount as a starting point, then subtract the amount of each purchase that you make during that month. Judge potential purchases against that balance to determine whether or not you’ll be able to buy the item and stay within budget. When the new month begins, add the budgeted amount to determine your starting point for that month. The balance will vary from month to month, depending upon the degree to which you under- or overspend.
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