Where does all the money go?

Ever wonder where all your money goes? We mean, really wonder?? You start with your paycheck and before you know it, there is more month left after the money. Believe it or not, there is a very simple method for seeing just where the money goes and it's free!

It's called the Shoebox method. Get a shoebox, cut a rectangular slot in the top. Now tape the box securely closed and write the date on it. Some people find it helpful to coincide starting this on payday or at the beginning of the month. Decide what start date works best for you. Once you decide though, be faithful and stick to the plan. It takes one month.

To start, pick your date. Now be sure to get a receipt for everything you spend money on, no matter how small of an expense it is. Include cigarettes, coffee (lattes), candy bars, nights out on the town, EVERYTHING! Every penny you spend, be sure to get a receipt if possible. Put all these receipts in the shoebox. If you pay your children allowance or have other expenditures that may not generate a receipt, quickly make one and stuff it in the box. Be sure to put a copy of your bills in there too.

Ok, it's been one month and you have been very good about gathering all your receipts and expenses, putting them in the box. Open the box and get a tablet to write on. Anything that is a repeated expense, be sure to write down under the same heading. Adding everything up, you can quickly see where the money really goes. Be sure to multiply those figures by 12 to see how much is spent a year!

This should allow you to see exactly where you can make some cuts by giving you a great overview of your expenditures. Don't wait to do this, get started today!