Managing money is a never-ending process. As much as I wish it were just another item on my to-do list that I could check off and declare officially done, that’s simply not the case!
You know the phrase, “out of sight, out of mind”? That’s exactly what happens when you don’t stay on top of your money. You forget what you’ve spent, and quickly lose sight of those lofty savings goals you wrote down at the beginning of the year.
While some might say you need to budget once a month, plan weekly check-in’s, or have an occasional money chat with your spouse to stay on track, I think it requires much more maintenance than that to avoid potential money leaks. Daily habits are the key to success, and these 5 will keep you focused on the goals ahead!
1. Spend Smart
Almost every single day we spend money — whether it’s on a quick grocery store run, pumping gas in the car, or purchasing an item we found online. But what we often fail to do, is ask simple questions about the money we spend, such as:
- Could I get by without this item?
- Could I get it for FREE, or could I borrow it?
- Is there any way I can I get for less?
I know that seems like a lot of questions when you’re picking up something really simple like a bag of apples or a package of socks, but the answers are as easy as a 5 minute search online for a printable coupon, downloading a money saving app, or waiting a few weeks until an item pops up on Craigslist instead of paying full price.
The point is to think through any purchases you might possibly make that day before heading out to the store and handing over your hard-earned money. Just a few minutes of brainpower could be the difference between a few dollars, or a few hundred!
2. Keep Track of Receipts
I’m a big proponent of expense tracking {yes, down to the very last penny!}, and even have a little receipt jar in my office where every receipt goes after I get home from the store or running errands. This saves me loads of time that I would have previously spent digging around in pants pockets or purses trying to make sure I didn’t miss anything.
I might not get to entering in all my receipts every day {this is usually a once a week process}, but it’s a visual reminder of what I’m spending every day, and that’s what counts. When my little jar is stuffed full in just a couple of days, I know my spending is getting out of control, and I need to be a little more careful.
Instead of the paper/pen route, you could also download a receipt tracking app, like Smart Receipts {Android} or OneReceipt {was shutdown in 2016}, and snap a picture of your receipt to create an instant digital footprint.
3. Check Your Bank Account
Sometimes we don’t always have a receipt for purchases we make. For example, have you ever signed up for automatic payments, or had a receipt emailed to you from a department store?
These purchases quickly bury themselves in your inbox if you don’t stay on top of them. I like to check my bank account every day so I don’t miss anything and always know what’s going in and what’s coming out.
This is also a good idea if you carry a credit card. Check your account every day, or every other day, and keep an eye out for unauthorized purchases. If you wait too long, you might have hundreds charged to your card, without even knowing it — yikes!
4. Find Ways to Be Thrifty Around the House
Managing money isn’t just about spending, it’s about saving too, and there are so many creative ways to do this right at home! Here are a few things that will save a few dollars every day:
- Eat at Home — Start meal planning and/or freezer cooking to avoid spending money at overpriced restaurants. You should also be diligent about eating leftovers to eliminate waste.
- Experiment with Homemade Cleaners — It’s incredibly easy to make your own cleaning products and they cost pennies compared to bottles at the store. You probably have most, if not all, of the supplies in your pantry.
- Take Time to Organize — Organization really does save you time and money, and it’s unbelievable how many treasures you find when you take the time to properly label and put things away.
- Repurpose and Reuse — Our grandparents were very diligent in finding alternative uses for supplies that could very well have gone straight to the trash. Before throwing an item away, see if you can give it new life. Just be careful not to let it turn into clutter!
5. Communicate with Your Spouse
I find that the best way to get my spouse on board with any financial goals, is to keep him in the loop. If my husband has no idea what he can and cannot spend, he will probably spend more often than not!
A quick chat in the morning or evening about any purchases we need to make that day makes all the difference. I also like to physically show him our budget and bank accounts so he knows exactly where we stand and how much money we have designated for each expense.
Maybe your spouse is the one that actually does the finances. I still encourage you to ask questions and communicate just to keep yourself informed. Working together not only leads to a stronger marriage, it avoids potential money conflicts too.
If you’re tired of feeling like you can’t stay on top of your money, try one or two of these habits until they become just another part of your daily routine. Then add on a couple more until you’re practicing all 5 without really thinking about it. You just might find that managing your money isn’t so much of a chore after all!
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Great post! I find myself doing all of these things. Although keeping track of all of my receipts is probably the hardest part. I try to keep track of all of them for tax purposes by keeping them in a manilla envelope.
Looking forward to reading more of your posts!
Peter
I really appreciate the idea of asking those three questions before making a purchase. What a difference it makes to rationalize buying something before just tossing it in your cart.
Especially having kids, asking yourself if you could borrow something rather then buy it is a great thought. Thank you for your post.
Ruth didn’t you use to have a site where you paid membership? What happened to it?
After years of a lot of impulse buying, I am now more careful before purchasing items. I also think if said item is really that important, we both discuss if we should buy it etc. It does help a lot. And keeping track of our expenses has been a HUGE eye opener 😀
I’m not so sure keeping all your receipts is really necessary nowadays. I might be mistaken, or overlooking something, but… I can see in days past when the primary payment method was cash that keeping track of all your receipts was necessary. But now since nearly 100% of my transactions are paid for with either my credit card or Paypal, everything gets logged either in my credit card activity or my Paypal history. Is it really necessary to keep your receipts when everything is already being tracked for you automatically?
I definitely agree….to a point. I keep receipts for tracking purposes, but I also keep them just in case I need to return an item. For instance, I recently bought a rug at Target that completely fell apart after washing it. I took it back {even though it was past 30 days}, and they gave me a full refund no questions asked. If I didn’t have that receipt, I would have eaten the cost. I do, however, throw away fast food and gas receipts because I don’t ever need to reference them again.