Track Income and Expenses

Now, don’t get too excited about creating a budget just yet. You’ve jumped over two of the most ‘difficult’ hurdles. Now it’s time to track your income and expenses. This is a two-part process.

First, start by looking at your former expenses. Grab your transactions and comb through them. Are there any subscription services you forgot about? What are other black holes that are causing your money to trickle away? Once you pinpoint them plan on cutting them loose, especially if you barely use those services anyway. Then, look at what you spend the most money every month without even realizing it.

Finally, start using a free budgeting tool. There are plenty of apps you can download on your phone so they’ll always be available to you. Personal Capital and Mint are two great examples!