Budgeting. It's something that I despise. I think most people don't care for it as well. But it is an important habit to develop. You want to make sure that you're not racking up debt and you're hitting your savings goals.
To me, as long as you're hitting your savings goals, then spending comes down to what you are comfortable spending money on. Whether a higher proportion of your money goes to getting lattes, going to the salon,or going to the golf course - it's all just spending. If you're not accumulating debt, and you're hitting your savings goals then generally speaking, you’re on track.
Track Your Spending
I saw an article that I thought was very interesting about tracking your spending. The basis of the article was not to judge or feel guilty as you spend money, but to just track it. Track it for 30 days. Every time you make a purchase, take a few seconds to notice what you are spending your money on. This is not about changing behavior but to increase awareness of your spending.
Every day, write down everything you spent. Categorize and include an observation about what you purchased. In 30 days from now, I will come back to talk about this exercise.
Now I realize that it may be challenging to remember to do this exercise, let alone track it every day. But this is a good month to try this, as November and December could be budget busters with the holidays.
So the challenge I have for you is to track your spending and write down every purchase for the next 30 days. Again, every time you make a purchase, take a few seconds to notice what you are spending your money on. “Being aware” of what you’re spending money on. In 30 days from now, we’ll talk about this exercise and a very interesting way to look at the spending that occurred during this 30 days. This is an exercise for everyone even if you're hitting your savings goals.
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If you’d like help reviewing your investment strategies and saving for retirement, please contact Casey Boland via email [email protected] or 513-598-5120.
Date Posted: 10/05/2016 Advice provided in this article is meant for educational purposes only and financial education is important to us. Before making decisions regarding your personal financial situation, please consult an advisor or conduct your own due diligence. If you would like to discuss your Retirement Income Plan with an HCM Wealth Advisor, please give us a call – 513-598-5120. Located in Cincinnati, Ohio, we serve clients in 28 states, and we’d love to help.