For example, most people have no real idea of how much money they actually spend on food but when you create and maintain a budget, not only will your awareness rise, but much of the time your bank account will flourish as well. That's because most people find various ways of cutting corners once they realize how much they are truly spending. Instead of thinking a budget will end an era of eating out and renting videos, think of the incredible vacation you can have by limiting the activities you engage in now. In addition, many people on a budget find that they can engage in the same amount of activities they did before the budget only now they look for sales and eat out at places that are more budget friendly.
At the end of the week, transfer all your purchases to your monthly expense record worksheet. On this worksheet, you will have a comprehensive view of all expenses for the month and how much you spent in each category such as food, household, and medical just to name a few. You will also record your monthly expenses such as utilities, car payment, credit card payments, and investments.