Is tracking spending worth it?
(Updated Jan. 2021)
Hi, I’m Sarah and my husband and I have paid down over $100,000 worth of debt combined. We are close to being totally debt-free when we pay off our mortgage this year (2021). Read more about our story here.
If there is one trick that has helped us pay down debt and stay out of debt, it is tracking our spending.
Have you ever considered using a spending journal? You may be thinking, “Why would I want to add one more thing to my “To Do” list?”
Yet, tracking your spending could be the one aspect of your budget you are missing to put the “debt-free” back into your life. Nonetheless, journals come to mind when writing about feelings and yes, they are more commonly used for this type of writing, yet isn’t your money journey just as important as your emotional journey? These two aspects of life are intertwined immensely.
Writing down what you spend will give you a clear picture of where your money is going and help you solve your debt puzzle. I suggest making this the first step to beginning your budget and obtaining financial freedom.
What is a Spending Journal?
Spending Journal: A written journal of all the money you have spent that week or month. I recommend tracking your spending for at least a week, but a month would be better and will give you a clear picture of how you spend. Moreover, once you have this in place you can begin to trim the fat off of your budget and use the extra money to pay down debt or save for an emergency fund or retirement.
Suggested Reading: No Money to Pay My Bills, Help!