Saving money is the top new year’s resolution for many and the way to start is by tracking every dollar you spend for a month or so, so you can account for your daily spending, an expert at Outlook Financial Center in Troy said.
“People really don’t know what they spend their money on,” Rob Burnette, Outlook Financial Center CEO, told News Center 7 Consumer Reporter Xavier Hershovitz.
“Fill out a spending plan on what you think you’re spending. Start there, then for the next 30 days, meticulously record every expense,” he said.
“If you pull 40 bucks out of the ATM, I want to know how you spent that 40 bucks.”
Part of that spending plan should include creating and maintaining an emergency fund that would cover three to six months of expenses, he said.
Burnette strongly advises you to wait for your next paycheck if you need money for something you want right now.
“The last thing you want to do is have to put it on a credit card and pay 30-percent interest,” he said.
At the same time you’re executing a spending plan, Burnette suggests that you create and execute a plan to trim debt.
Budgeting is not all sweat and sacrifice. The process can be fun too, he said.
If you are anticipating life milestones such as buying a house or renovating a property, plan for those events as well and work them into your spending plan, he said.
