Once you’ve tracked your expenses for a month, you can see where you are spending money. Maybe you are one of those lucky (or wise) few who discover that they are living within their means and have extra money to save for long term life goals. But if you have declared bankruptcy, you probably didn’t have the healthiest of money habits.
If, on the other hand, your tracking sheets show that you are headed for trouble again, it is time to make some choices. You are the one who has the power to make healthy choices.
If you really can’t spend less, then you need to earn more. Perhaps a temporary part-time job will give you the boost you need to find financial balance.
Most people do discover that the trouble comes from spending in the discretionary categories and from impulse purchases. Be realistic about your habits. If you smoke a pack a day, then you are unlikely to quit just because it costs about $250 a month. But could you switch to a less expensive brand or even roll your own? Can you pack lunches and snacks three times a week, instead of eating convenience food every day? If you find that you drop $10 every time you cut through the mall on your way to the bus-stop, then perhaps you need to find an alternate route for a while. How about if you save lattes for the weekend and drink regular coffee the rest of the week? These changes would save the average person over $700 a month in money that they probably didn’t even notice they were spending because it went out in such small amounts.
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