- Step 1: Starting today, save every single bill statement, receipt, or check that crosses your desk for at least one month, preferably three months.
- Keep a “spending notebook” in your pocket.
Sort Your Receipts and Statements
- Step 2: Take all of the receipts/statements/notes/etc. you saved up and start making piles on the floor in a way that makes sense to you.
Tally Them Up
- Step 3: Add up the totals on all of the receipts and statements in each pile, then divide these totals by the number of months you’ve been saving data.
Find the Fat
- Step 4: Go through each category and find ways you could reduce your spending in each one.
Try It Out
- Step 5: Work hard to stay within your target numbers in each category for the next month.
Rinse and Repeat
- Step 6: At the end of the each month, refresh your budget.
*For more information on Budgeting, visit: Budgeting 101
Who is rich? He that is content. Who is that? Nobody” – Benjamin Franklin