Many debt counselors, when asked what the first step out of debt is, answer with: Start and get an overview. Quite often, the first task for debtors seeking help is therefore to keep a budget book. With a budget book, you get a feel for where the money goes each month. Often you will be surprised at how much you actually spend. A common budgeting mistake is to budget money exclusively for food and let spending on recreation, clothing, drugstore items and purchases get lost in the food budget. This leads to money being very tight at the end of the month because, let’s be honest, there is always something extra every month. Professional dental cleaning, your microwave broke, the kids need new materials for school, some quarterly fee or tuition fees are due. Every month there is some special expense that is not in the budget. And be it a gift for someone or a new winter jacket.
Old school but it works: the budget book
When you start to get your finances in order, start with a budget book. It doesn’t matter if you write down your expenses on paper or in the Fabit app’s budget book. The important thing is that you really enter everything, and preferably directly when you spend the money. So even the fifth beer at the bar or really small amounts, such as a few cents for a roll, must be entered by you. Just like the bouquet of flowers for Mother’s Day – even if that somehow doesn’t appear in any budget. In general, gifts are something we rarely plan for when we think about our monthly budget.
This is exactly why it is important to keep a budget book for a while. The budget book keeps you aware of exactly what you spend your money on and why there is literally so much month left at the end of it. Try it out this month and get started with the budget book today. You’ll be surprised how quickly you’ll pick up this new habit and start entering that last drink even at 4 am.