How to Find Your Money Leaks and Plug Them

As the end of the month approaches, do you find yourself wondering where all of your money went? You sat down at the first of the month and planned out a budget. You tried to make frugal choices. Nonetheless, you’re still faced with having more month than you have money. What went wrong?

If this all sounds familiar, don’t worry. You’re not alone. Many others face the same problem while they’re getting used to the world of budgeting. You’re starting off on the right foot, but then you’re forgetting the last step. After you’ve made plans for your money, you need to follow up and track where you’ve actually spend your money.

Make an appointment to sit down and analyze how you spent your money. You’ll need to save your receipts and write down any cash purchases over the course of the month. Then, break them each into the categories they belong in.

Now that you know where you spent your money, you can determine where you veered from your plan. Did you spend more than you thought you would on lunches at work? Maybe you succumbed to temptation while you were out with your girlfriends and splurged too much on new clothes. Finding out what caused you to blow your budget is the first step to fixing it.

If convenience purchases like work lunches are the culprit, you can find ways to plan ahead for your lunch. Maybe on Monday morning you didn’t have time to pack a lunch, so you gave up and went out with your co-workers. Try making your lunch before bedtime to make lunch planning easier.

For frugally-minded folks who are easily swayed by temptation from your friends, you may find that it’s easier to simply avoid the temptation. Stay away from malls if they are your weakness. Or, enlist a friend to help you stay on track with your spending. You can ask her to stop you if she sees you getting carried away.

In some cases, however, your plans may have just been unrealistic. Rising gas prices, for instance, could make it really easy to underestimate your fuel expenses for the month. You may find that you need to make adjustments to your budget each month to keep it in step with your actual expenses.

Ultimately, the way to find the leaks in your monthly budget is simply to go through your spending and add up everything you spend. Armed with the cold, hard facts about your spending, you’ll be able to fight your weaknesses and get them under control.

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