Why I need to track?

One simple answer is to cut expenses and save money!

Gather all of your monthly bills

The first thing you need to do is find a quiet place to gather all of your monthly bills. Start prioritizing your bills and ask yourself if there is anything you can do without -- if you find something, don't dawdle, cut it out immediately. The sooner you cut the expense, the faster you will be on your way to saving money.

Costly morning coffee

Cut the expense of the costly morning coffee from your favorite barista. Purchase a reusable mug and brew your own java at home. Come on, what coffee is really worth $3.25 a cup? Ask yourself, do I really love this coffee or does it stroke my ego somehow to carry this Starbucks cup?

Less desire for syrupy drinks

Cut the expense of vending machines. Get into the habit of preparing your own snaks at home and carry them with you throughout the day. Purchase ziplock baggies to keep non-perishable snaks and throw them in your purse or knapsack. Also, replace the habit of purchasing soda (pop) from vending machines by carrying your own reusable bottle. If you start drinking water all of the time you will eventually have less desire for syrupy drinks; this will be healthier and less expensive.

Need to have a landline?

Take a look at your home telephone bill. If you own a mobile phone, do you really need to have a landline as well? If you must insist on keeping your landline, try cutting the expense for enhancement services like call waiting, call forwarding, star 69, caller ID, etc. Definitely get rid of telephone company provided voice mail and purchase an inexpensive answering machine, you'll save more money in the end. Make sure that you DO NOT use your honme phone for long distance calls. Chances are, your cell phone provider offers a much better rate (probably free) than your local phone company.

Get rid of the premium channels

Look at your cable bill. Decide whether or not you can cut the expense of premium cable channels (HBO, MAX, SHO). When you really think about it, they tend to show the same movies over and over again. The really good cable series' have already ended, or will end soon anyway (The Sopranos, Sex and the City, The L Word). Save money now by getting rid of the premium channels before you start to get into new premium channel exclusive weekly series.

Do I REALLY need that flat panel television?

DO NOT use the services of rent to own stores. These people prey on the poor and credit challenged. When you look at the total cost of the item that you rent from them, you will see that you have probably paid more than three times the value of the item. What you are paying for is the opportunity to have the item immediately -- Ask yourself, do I REALLY need that flat panel television (or whatever it is) now, or can I WAIT and save up for the item and purchase it outright? By doing so you will utlimately save a lot of money. Rent to own stores are the ultimate in money wastefulness!

Payday loan companies?

Never, ever, ever utilize the services of payday loan companies. These types of companies work in much the same was as rent to own stores. They are almost like loan sharks, a couple of states are working to have them outlawed in their jurisdictions. Payday loan companies charge outrageous fees for their services - again, you are paying for the convenience of having an item immediately. This time the "item" is cold, hard, cash. Don't do it! You will always be behind in your finances if you contiunally utilize rent to own and payday loan services. If you save your money and budget well, you will never even have to think about these types of places.

Track your activity

Try to track your daily financial activity in a secure place, entry your expenses records at least once everyday. Make it your habit.

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source: ehow.com