Monitoring your personal finances is not always easy, but it is necessary. Whether you are saving up for a new home, a car, or a vacation, or if you just want to keep track of your expenses and create a budget, monitoring your spending habits and bills can help. Once you know how much you are spending and where most of your money is going each month, you can work on a place to help you pay off your debts faster and build your savings.
Payment Schedule
Before you can plan how to spend your money, you need to know when you will be paid. Most people are paid on a regular basis, normally weekly or biweekly. Keep track of your payment dates and use them to make a plan for paying your bills. Remember to consider any vacations or days off you have taken, or will be taking within a pay period. This will help you determine exactly how much money you will have to work with each week or month.
Making Payments
All bills have a due date, and if you want to avoid late fees and ruining your credit, it is important to pay your bills on time. Make sure you keep track of the due date for each bill as well as the amount. You may want to write this information on a calendar or in a planner. Pay the bills that are due each week out of your income or from a personal savings account each week. Many businesses and banks allow you to set up automatic bill payments, which allows you to have each bill paid out of your savings or checking on a certain date each month.
Budgeting
After your bills are paid, there are other things you will need to budget. You will need to shop for groceries and household supplies and purchase gas for your vehicle. Any personal items or services you pay for regularly should be considered in your budget. You can also leave money out for special occasions or vacations. Many people add eating out or going to the movies to their weekly budget because it is something they look forward to doing each week.
Credit
You should always be aware of your credit score and credit report when monitoring your personal finances. These things will help you keep track of how much you owe, and can be a great reference if you are trying to pay off a loan or pay or debt. Check your credit report for free every six months to make sure it is accurate and up to date.
You work hard for you money and you owe it to yourself to figure out where it all goes. By monitoring your personal expenses, you will know what you need to pay and when you need to pay it each month and will also be able to create a plan to save money and pay off your debts as soon as possible. If you are ready to take control of your finances, start by monitoring them and keeping track of each bill and all of your personal expenses.
