Short Money, Long Month

Personal Finance 4 The People is pleased to team with others who are able to share their expertise in various areas. We hope to combine our efforts to bring a greater financial effort in order to help you reach YOUR Financial Independence. Today's guest post comes to us from J S Aikens.

There is an epidemic of this condition.  I have talked to many people who feel they make enough money to meet their financial obligations, until the bills come.  If you’ve ever wondered where your money went, here is a way to find those pesky leaks for those of us who are not accountants.

The $1 solution.  I’m sure you’ve seen those plastic envelopes in dollar stores and dollar aisles of stores. Pick up one for your car, one for your home, and ladies, carry one in your purse.  Every time you make ANY PURCHASE the receipt needs to be placed in whatever envelope is with you.  If you’re in your car, put it in the envelope. If you have your purse, slip it in that envelope, and when you get home, empty your pockets and put them in that envelope.  At the end of the month, when you’re paying those bills gather those envelopes and total your spending.

Now there are some who will tell you to cut your expenses, save your money and live below your means. Then you’ll have saved enough money for your family to cover your funeral costs. Doesn’t that sound great! That’s right, it doesn’t. Now I’m not condoning frivolous spending (we’ll talk about that another time). But there are things you enjoy and should have. You just need to know what those treats cost you, and then figure out a way to afford them. Stay tuned.