You’ve probably read the wise old advice of “use cash instead of credit, you’ll be able to budget your money better!” While this in part is true because once you run out of cash, that’s it, you’ve reach the amount you have to spend, how do you keep track of where the money went?
One great way is to use your credit card. At the end of the month, you’ll have a detailed history of where you’re money went and how much you spent on each item. Even better is the fact that after a few months, you’ll be able to find a pattern in your spending by sitting down and analyzing your credit card statements from the previous few months.
Another bonus to using this method is that it will help boost up your credit history. However, make sure you pay your credit card bill each month in full to avoid those pesky interest charges. Make a point to spend up to a certain amount on your credit card each month. Give yourself a limit just as you would if you were carrying cash. Once you’ve reached that limit, stop spending. As months pass by, you’ll be tracking your spending habits on your monthly credit statement and can view exactly what goes where. Ultimately, the goal here is to pinpoint what expenses you can minimize and possibly eliminate thus modifying and creating a stronger budget.
Good Luck!