Though simple in concept, budgeting can be a daunting task in the eyes of many people. Keeping track of where your money goes may seem like a chore that is time-consuming and difficult, but it doesn’t have to be this way. Budgeting and keeping track of expenses can be as simple or complicated as you want it to be.

A budget is the foundation of your finances.

Why Keep Track?

Keeping track of your expenses will show you where your money really goes.

Do you know how easy it is to spend an excessive amount of money on unnecessary items? If you get a mocha or latte at Starbucks twice a week for the year, you’ve spent well over $500 on coffee alone.

Removing the Unnecessary Sink Holes

Almost all of us have opportunities for improvement in our budgets. Once you have created your budget and realize where you are spending the largest amount of money each month, you will be able to think about cutting down unnecessary costs that are dragging you down.

Perhaps limiting yourself to one coffee shop trip a month (and making your own the rest of the week) is something that helps you have more cash for other important things. Or maybe you realize you are pumping money into cable TV each month, when you are barely home to enjoy it. Or maybe you find that the money you spend going out for food more often than not would be less costly if you chose to cook at home a few more times a week.

If you aren’t willing to take a good look at where your money goes, then you will continue to spend the same. Saving up, paying debts and living within your means are facets of a solid steward. Don’t squander what you’ve been given–be responsible with it.

You Can Still Have Fun

This might sound like if you keep track of where your money goes then you will feel guilty for having any fun, but that shouldn’t be the case. Having a special column in your expenses for entertainment is a good idea, but this should be the lowest cost of the month or a treat for when you settle your first debt on your Christian debt settlement plan. Entertainment would include TV, desert and coffee, shopping for fun and doing other entertaining things like going to a basketball game or concert.

Getting Started

Whether you use a piece of paper, an excell spreadsheet, or software you find online, the important thing is to take action.

There are programs out there that offer to take your card spending and filter it into a readable format of expenses. You can also do it yourself, but the most important part about this is that you start immediately and you keep up with it!

Each week you should enter your costs that you have paid out and any money you have brought in. Keeping your receipts for the day until you can enter them into the computer will help you not forget what you’ve spent money on.

Your budget is going to be the foundation of your finances. Take the time to create an honest budget and you will be well on your way to achieving your financial goals.