How do you record spending?
There are different ways to keep track. Choose the one which fits you best.
The Writer: carry a little notebook with you and write down what you spend. Note even little amounts: they all add up.
The Accountant: ask for a receipt every time you buy something. At the end of the week, add up all your receipts.
The Technologist: use your mobile phone to note down what you spend. Then compile the data on personal finance software like an Excel spreadsheet. Enter your budget into the same software and compare your actual expenses with what you expect to spend every month. You can even do the graphs in colour.
The Allocator: think making notes is tedious? Use envelopes: put your allocated monthly budgeted amount of money for clothes, for example, in an envelope. Only use that envelope to buy clothes. At the end of the month, count how much is left and find out how much you have spent. Use different envelopes for your different expenses and don't mix them up.
Whatever method you choose, at the end of the week or the month, add all the amounts by category: transportation, food, clothes. Are you happy with the way you spend your money? Does it fit your goals? And don't forget, save first, spend after.
