It seems painfully obvious: keep track of where you’re spending your money and you won’t lose it. That’s like saying; “The best way to avoid losing your kids is to keep an eye on them.” Yes, it’s obvious. Yes, it’s true. And no, many people don’t do it well. 

It’s a common scenario: The next paycheck doesn’t come for another five days, and thinly spreading what is left of the money until payday feels like stretching the last piece of Saran wrap over dinner’s leftovers. Where did budgeting go so wrong?

The basics of money tracking are easy. You know how much you make each month. You also know your big, fixed expenditures, including any rent, mortgage, loans, car payments, etc.  Now you’re left with a new number. This is supposed to cover your living costs, like gas and groceries. Subtract those totals, and the final number is your “leftover” money. This covers any incidentals and should leave you with some cash to save. It sure seems like a great system. Why, then, do you find yourself wondering where that money ran off to?

Unless you have a sneaky and kleptomaniacal child, chances are you are spending it without even knowing it. A handful of small purchase justifications can add up to one, big deficit.