Physically keeping track of every purchase can be very eye opening. Many things you won’t be able to change, and many you won’t need to. The idea, though, is to document overspending on unnecessary and avoidable uses of your budget. Keep a journal with you and write down every time you take out your wallet. At the end of the month, add up different categories to see where your hard-earned money is so stealthily disappearing to.

“I spent $125 on coffee this month?!” may lead one to think “Maybe I don’t need to buy my venti half-decaf soy pumpkin spice latte every morning. Maybe I can make coffee at home.”

Even something necessary like buying groceries can be examined. If you notice that you’re spending far above what seems reasonable at the grocery store, you can focus on buying more sale items, generic brands or less expensive food in general next time you go shopping. 

 If you’re really dedicated, try documenting your spending in different categories (maybe eating out, clothing, coffee, bars, groceries, movies, etc.) in a spreadsheet, such as Excel. This way you can see how you spend your money clearly and over time. You may be surprised to see how much you can save by reducing spending in one of your more overzealous categories.

            If you still have no idea where your money goes, it may be time to sit your kids down and talk to them about why it’s wrong to take money from mommy and daddy’s wallets. More likely, though, you’ll have a good idea of your seemingly harmless spending habits.

            Do you have a way of tracking your spending that seems to work for you? Post it here!