Every dollar counts
Every dollar counts
July 23, 2012
It’s not easy to keep track of how much money you spend. Buying a morning coffee or a bagel may seem like a small routine purchase—but day after day, expenses like that can really add up. A great way to keep track of your money is to make a budget and then stick to it.
A friend of mine once said, “There’s always too much month left at the end of the money.” It made me laugh, until I realized how right my friend was. Most of us plan for our fixed expenses—costs that rarely change, like rent, phone, or cable bills—but it’s the little daily purchases that drain our bank accounts. Before we know it, there’s nothing left to put into our savings.
To save up for a vacation, a new car, or even the latest gadget, it’s important to know where your money is going. Consider tracking your expenses using this great online Expense Calculator. Estimate what you buy on a daily basis and how much these purchases cost. This tool will help you understand how much you spend weekly, monthly, and even yearly on that cup of coffee. It certainly helps to put things into perspective.
Create a budget based on your monthly income to determine how much gets eaten up by your fixed expenses. Then, figure out how much money you have left over after your bills are paid. Of that amount, how much can you reasonably commit to putting into a savings account? Any little bit helps. Try putting away $25 a month and, by this time next year, you’ll have $300 in your savings account, plus whatever interest you’ve earned on that amount. The important thing to remember is to develop a budget and savings plan that works for you.
Share some of your tips for saving money and budgeting in the comments below!
Comments
Carly Lance says,
July 24, 2012
"Thanks for the post Rob, your articles have helped me a lot and the expense calculator is a really valuable tool! I've coauthored several articles on saving money and budgeting on my blog personal bankruptcy canada. I'm currently writing a blog specifically for students about managing debt. Does youth.gc.ca have any other resources similar to the expense calculator that you'd recommend I share with my readers? Thanks again!"
Rob says,
"Hi Carly,
Thanks for your feedback. Youth.gc.ca has several resources on managing finances that you could recommend to your readers.
Good luck with your blog!"