Cash’s flying out of my bank account!
(This is Tip #1 in the Surviving The Recession Financially series)
Now that the recession has hit, most of us will find the most intuitive thing to do is to cut back on our expenses. To me, cutting expenses is important, but it’s not the first step.
It’s critical to know how much exactly we’re spending on a daily, weekly and monthly basis. It’s also important to know what kind of expenditure these are - are they:
- restaurant food expense, or hawker centre food expense?
- taxi transport expense, or public transport expense?
- expenses on groceries and other household needs?
- expenses on party and entertainment?
In a difficult period such as this, we may find that our income may drop at any time, so knowing your expenses can be critical to your survival. Even if you don’t get retrenched, knowing your expenses can help you realize how much you’re really spending on items that arn’t worth your hard-earned money.
How can I track my expenses effectively?
- If you use a Nokia phone, there’s Handy Expense.
- If you use an iPhone, there’s iXpenseIt, which is fantastic for tracking not just expenses but budgets! I use it personally in order to know where every cent of my money is going.
- If all else fails, use a small notebook!
What will it take for you to start tracking your own expenses?
2 Comments, Comment or Ping
Susan Kishner
Well said
Dec 5th, 2008
Reply to “Cash’s flying out of my bank account!”