I read a fantastic book quite awhile ago called Your Money or Your Life. It covered spending habits and had an exercise similar to what happens on the show that certainly opened my eyes.
Most people make smaller purchases form an area of the paycheck called disposable income. The problem with this is that most people don't keep track of where this part of the budget begins or ends, so they get into trouble. My favourite saying used to be, "What to you mean i'm overdrawn, I still have cheques left!".
In the book, the authors suggested a small notebook be used to write down every penny spent and earned every single day. At the end of the month, place all the items in to categories like entertainment, food in, food out, clothes, health care, beauty, etc. This is a difficult habit to stick to at first but becomes second nature after awhile. You have no idea where the money goes until you have done this for a month. It made my eyes water when I calculated the cost of the morning coffee everyday on he way to work or the take aways when too tired to drag out the pots and pans.
I found that by performing this exercise, there wasn't neccessarily guilt and shame involved the next time I went to purchase something but it made ne question the need of the particular item. This made it so much easier to keep the wallet closed and to keep on walking by. By combining this system with a few goals of better things to do with the money I work so hard to make, I don't feel I am sacrificing or missing out on anything.
Hope this helps someone!
Page 1 of 1
fantastic book tracking spending
#2
Recoveringworkjunkie 
- Newbie
-
- Group: Members
- Posts: 2
- Joined: 30-January 06
Posted 04 May 2006 - 11:12 AM
I have read this book just recently. It has made me look again at every aspect of my financial life and I have set about re-organising my finances to reduce wasteful spending. It's only when you look at the big picture, I think, using the tracking method over time, that you realise the direction your money-life takes and how it is possible to spend extra money without always realising it.
The part towards the end about investment income and personal expenses, really opened my eyes to future possibilities.
The part towards the end about investment income and personal expenses, really opened my eyes to future possibilities.
#3 Guest_Laura_*
Posted 25 July 2006 - 08:13 PM
Can you tell me the name of the author please? It sounds like a good book but there are a few different books on Amazon with that name.... thanks 
xLx
xLx
Share this topic:
Page 1 of 1