Page 15 - Book2E

To really see how much difference those insignificant purchases can add up to, put the $1.00 in a piggy bank every time you are tempted to buy a drink. Then use the money at the end of the year toward something you really want or pay off one of your smaller creditor balances. Do this for each insignificant purchase you make, and you’ll be surprised how much you will have.
to spend $390 a year on? Isn’t there something else you would much rather treat yourself to with that money?
Carry a small notebook with you in which you can write down every- thing you spend on a daily basis. Trying to remember everything you spend will not give you an accurate record. Too many things will be forgotten. Having a notebook with you will help make sure that every tip you leave or stop you make at the convenience store or vending machine gets recorded. You’ll need to add these daily expenses to the major monthly expenses you have like your house payment or rent, groceries, etc.
In addition to writing down all the little expenditures, keep all of your receipts. Receipts are not only a helpful way to track what you’re spending, but they also help you determine where you can reduce what you’re spending. At the end of each week, sort the receipts into categories and total each category for a true picture of where most of your money goes. Consider not carrying cash but paying for each expenditure by check. If a merchant doesn’t accept checks, maybe you really don’t need to make the purchase.
Some people find it difficult to be completely honest about their spend- ing. It is not uncommon to find one spouse in denial regarding the amount of spending he or she does. Real resolution of your spending or outflow cannot happen unless all household members are willing to take responsibility for what they contribute to household expenses.
Establishing a Budget
7