However well-intentioned you are, whatever kind of financial plans you put in place, the problem comes when you’re out in the real world, living day to day. It becomes very difficult to keep on top of your money because there’s so many other temptations around us and actually, it takes time, discipline and, to be honest, it’s also not much fun. Well, I’ve got some good news for you. There are a couple of things you can do today to track your spending automatically.
Set Up Multiple Bank Accounts & Use standing orders
I want you to set up a separate bank account for your day-to-day spending money - That’s the going out money, the grocery money, everything that you spend when you’re out and about. Also, if you haven’t already got one, I want you to set up a separate bank account for your savings and then I want you to do one really powerful thing; that is work out in advance how much you can afford to set aside for day-to-day spending and also how much you can afford to save at the start of each month and then set up a standing order to go out as soon as you get paid.
What you’ll soon find is that once you start automating your savings, you won’t need to worry about it because the money will be building up automatically and, secondly when you check the balance on your day-to-day account, you’ll be able to see exactly how much money you’ve got as the month goes on and you can adjust your spending accordingly. The problem with having just one bank account is that if you go to the cashpoint on, say the 17th of the month, if the balance is £238.50, you don’t really know whether that’s money that you can spend or whether there are perhaps more bills, standing orders or direct debits to come out of that. By having a separate bank account, you’ll be able to keep on track much more easily.
Use Automated Bank Alerts
Another tool that is really powerful is automated bank alerts which are available on most bank accounts. It usually doesn’t cost any money to set these up but these are a really good way of giving you a heads up when things might be going off track. For example, you might want to set up an alert when the balance falls below £100, £50 pounds or whenever the balanced falls below zero. This will allow you to take immediate action to change your spending habits, rather than being confronted by a nasty surprise when the statement arrives at the end of the month.
These techniques only take a few minutes so why not give them a try today?
Other blogs you might find useful:
Click the button below to join my mailing list and get instant access to the PDF guide. You can unsubscribe at any time.
To be the first to receive a host of free tools and information to transform your finances enter your details here.