Step 2: Track your daily spending

It’s time to cut back on the extras. Use the following worksheet to find big savings where you least expect them! It is time to start paying you. 

It is so easy to be indifferent over the spending of a few dollars per day when the reality is you could be making big savings. Fill out the following ‘Daily Spending Habits’ sheet to determine just where your money is leaking out day by day.

Daily Spending Habits

Day      Items I Bought      Cost      Did I really need?

1           Item name              $Y          Yes or No
2   
…

Add this up for a 10 day period, multiply it by 3 to get a monthly figure, and then multiply that figure by 12 for the amount of money you have spent over a year that perhaps could have been more wisely allocated to benefit your financial goals.

Now complete the Cashflow Statement (below) to understand exactly where your income becomes our outgoing:

Cash flow Statement

INCOME 

Gross salary/wage $
Interest/Dividends $
Commissions $
Net rental income $
Miscellaneous $
Total income $

FIXED EXPENSES 

Income tax $
Home loan(s) $
Car loan(s) $
Personal loan(s) $
Credit card 1 (minimum) $
Credit card 2 (minimum) $
Credit card 3 (minimum) $
Rates $
Insurances $
Super contributions $
Miscellaneous $
Total fixed expenses $

VARIABLE EXPENSES 

Food $
Transportation $
Clothing/personal care $
Entertainment/holidays $
Medical/dental $
Utilities $
Charitable giving/tithing $
Miscellaneous $
Total variable Expenses $

TOTAL EXPENSES $