When you have a plan, know how much money you have and where it’s going, you don’t have to worry about it.
Before you can make a plan
, you need to know how much money you have and where you spend it.
For at least one month, track all your expenses, all of them, not just the big ones like your rent payment and grocery bills; log all smaller purchases, especially cash purchases that may not show up on your credit card bill.
Everywhere you have a internet connection you can sign on into our service and log your expenses. (Soon you will be able to do it offline from your iPhone with the iOS app we are devoloping).
Make a diagnosis
At the end of the month, examine our fine reports or create your owns and look where all your money went. Organizing your expenses using tags/categories (such as housing, transportation, clothing, entertainment, food, dining out, etc...) and find out where to rise a red flag.
You may find that you are spending almost as much on “quick trips” to the grocery store each month, for example, as on your main weekly shopping trip. You may discover you’ve been spending too much time at the coffee shop, or that you didn’t save a single penny for a rainy day.
Define your target
What is your financial goal? Maybe you want to get out of debt, buy a new car, take a vacation.
Define how much you want to save, allocate a budget for the main tags/categories and the system will constantly monitor if you are inline with your target or not.
Looks at the problem areas you identified in your diagnosis and find ways to fix them. For example, if you found that dining out was eating away too much money, take your lunch to work instead of eating at restaurants. That act alone could save about $100 a month.
Stick with the plan
Keep up with your decisions and your money related stress will be replaced by confidence.