Does tracking your spending really work? Take a look at what three spenders discovered by tracking their expenses and the impact it had on them.
Holly Johnson, Staff Writer for getrichslowly.org shared her personal experience in an article last year. She says: “When my husband and I started tracking our spending years ago, we discovered that we were spending over $1,000 on food each month … for two adults and a baby!” Johnson admits there were other outrageous expenses that were sabotaging her budget. After this realization she began to modify her spending habits and was able to pay off debt a gain a bright perspective for the future.
Warren and Betsy Talbot started to meticulously track their spending and just 2 years later, they were able to fulfill their dream of traveling around the world for one year. Gerri Detweiler, Credit.com’s Director of Consumer Education highlighted their story as an amazing example of how tracking expenses can turn your life around. Their tracking revealed that they spent $1,500 a month eating out! By reducing their restaurant budget to $500, they were able save up all of the money for their year long trip exploring the globe.
When Sam the Financial Samurai looked over his expenses for the month, he found a charge for $690.50 that he absolutely did not remember making. After investigating the charge he realized it was a reimbursable rental property appraisal charge. If he hadn’t been tracking his expenses, could this charge have slipped by unnoticed? It’s possible. On the plus side, Sam was also able to see how much he had saved in one month by taking the bus.
Have you started tracking your spending? Tell us, what did you discover?