In this economy, keeping track of our spending is vitally important for many of us. But some folks have trouble keeping tabs on their tabs. Certified financial planner Ross Marino offers some advice in today’s Marino on Money.
Q: Do you have any tips for tracking spending?
You must find a way to track your spending and understand where all of the money is going. When it comes to personal finances, out of sight usually means out of mind. Can you remember where you spent every dollar last month?
Many computer programs provide help with tracking spending. If you either do not have a computer, or are not comfortable using this type of program, use a pen and a notebook.
Try writing down everything you spend money on for one month. Then, write down the details for all of your debts. Include the current balance, interest rates, payments, and when you think the balance will be paid off. This is a sobering exercise, but necessary to understand your financial position.
The more you see debt, the more you want to eliminate the balance and pay it off. Simply reviewing your debts on a regular basis will influence the way you spend money.
If you have a financial question for Ross, you can use the Marino on Money page.
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