Keeping Good Records

Keeping good records and reviewing your budget on a regular schedule—at the end of the month, for example—can help you determine where you overspent and where you can afford to spend a little more.

Bank and credit card statements can help you keep track of income and expenses, but don’t rely on them alone. Keep your own records to track the smaller but recurring expenses your bank or credit card company may not list separately, such as what you did with the $50 you withdrew at the ATM.

Good record keeping helps you identify overspending and makes it easier to plan for next month or next year (particularly if you have a past budget as a reference point). Applying the lessons you’ve already learned about balancing your income and expenses and managing your spending gives you a head start.

If your record keeping shows that you’re on track, you might treat yourself to something from your list of wants.

 

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