How To Do A Spending Analysis

How do I do a spending analysis?

The easiest way to do a spending analysis is to just start with how much money you spend every week, perhaps every two weeks, every month. You don't have to do this forever, you want to make it easy on yourself, so you want to do it for a relatively short amount of time but just keep track of everything you spend. Write it down on a little notebook. You know, if you carry a PDA around with you, do it on that. Use your credit card statement when it comes in, use your bank card statement when it comes in. Just keeping track of your expenses, save all your ATM receipts, you know. Just keeping track of your expenses for a week, even a couple weeks just shows you where the money is going and I always say that there's always one area that you're just hemorrhaging cash and it's always a surprise when you find out what that area is.