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One thing I’ve found extremely helpful while trying to improve my financial situation is to take a daily look at a certain aspect of my finances, whether it be looking at my spending, checking my bank account balances, reviewing my budget, examining bills for correctness, or looking for more ways to save money.
The repetition of examining your finances on a daily basis can really help you improve your situation, especially if you are having problems. Even if you have simplified your finances with automatic payments or withdrawals, or are in pretty good financial standing, you can make things better and probably hold on to more of your money by examining your financial situation and thinking about it on a regular basis, even as little as 15 minutes a day. Some ways you can stay on top of things and improve include:
- Check your spending vs. your budget- Keeping tabs on your actual spending vs. what you have budgeted can prevent overspending in certain categories, and by checking regularly it will give you a “heads up” if you are getting off course.
- Thinking about what you spent that day- Keeping track of your daily expenditures can clue you in not only on how much you are spending but on what as well. Many people find it helpful to write all of their spending down for a period of time, to find out where all of their money goes, and to help find out good places to cut back.
- Monitor bills and check for accuracy- While most of the time, bills are probably correct, mistakes do happen. Especially if you have automatic payments set up, and some of your bills are variable, a quick, careful check can help you discover if you are paying too much, or if any mistakes have been made.
- Look for unnecessary expenses that can be cut- By looking at aspects of your finances regularly, you will probably quickly notice things that you no longer use, such as certain services, etc. When you discover something you can live without or are paying for more than you really need, such as premium cable, or an unlimited phone plan, downgrade to save money or eliminate the expense completely.
- Look for better deals- If you are planning on making sizable purchases in the near future, or you have your eye on something, checking ads and online deal websites regularly can help you get the best price on an item you are looking for.
- Planning future spending- Planning things you will need in the future is a great way to get a jump on saving up for them. Right now is a really good time to plan and even start your Christmas shopping, for example. Planning on a new car in a year or two? Start saving for large purchases like this now.
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- Don’t Wait on Someone Else or Some Future Event to Fix Your Finances
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We as Americans can’t seem to look at life in increments. A $3.00 coffee here or there seems to mean nothing to us. Trying to save on everything is the key. I deposit into savings weekly no matter how small an amount. In increments it really add up since you stay on it every week.
Great post!
@Ray- Thanks! You are right about that. Small steps on a regular basis can really add up over time.
The worst thing you can think is, “its only a couple bucks.” None of my friends beleive me but a couple of “bucks” adds up to a couple of “thousand bucks” over a few months.. By saving 20 bucks a week I am able to afford a vacation every year, while all my friends complain and say it must be nice.
@Studenomist- You hit the nail on the head there. Really, how easy is it to spend $20 a week on random “stuff”? Very easy, if you’re not careful, but if you are, like you say, you can pay for a nice vacation every year. Good example!