If you're anything like me you may feel a bit frazzled when it comes to the budget. There are bills to be paid every month from the mortgage to the electric and water to the cable bill and cell phone. It's easy to get confused and forget when something is due.
If you're not sure where the money is going every month, it's probably a good idea to stop and get a hold on where your money is coming in... and going out. Start tracking your in flow and outflow and see where the money leaks are.
Thankfully in this day and age there are some good software solutions that allow us to make the process extremely easy and simple. The one I'm currently using is called YNAB - you need a budget. It let's you set up income and spending categories and track everything down to the penny. When you've tracked for a month or two you'll begin to see a pattern and figure out where the money is going.
Another option for a lot of folks is to use an automated income and expenditure tracker like Mint.com. Mint allows you to setup all your financial accounts and automatically pull your transactions into your account to be categorized and compared against your budget. Read a full Mint.com review to see how it works at the link.
In the end tracking your expenses will allow you to set up a sensible budget, and get on track to being free financially. Good luck!
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