MONITOR YOUR EXPENSES

To determine where do you spend most of your money, it is better if you write down all your everday expenses for a month. By doing this, you will be able to see what purchases were really not necessary and what other things you can cut down. This will also take discipline because we usually get tired of listing down everything everyday. But if you are really serious on managing your finances, you will do this everyday for a month. It is even better if you will make this a habit.

If you are married, inform your partner about this monitoring activity so that he/she will also be aware of monitoring his/her own expenses. If you have kids that have money allowances, teach them to list their everyday expenses, too.

You can also make this a fun activity by comparing notes at the end of the day and see who got the lowest money spent.