For this week/month only, record everything you spend using cash and credit cards.

The recording of where you spend your money should reveal unconscious spending of small amounts that over time add up to large amounts. Make sure you do not change your spending habits this week/month! It could be your last period of freedom.

While completing this diary, you may realise that in the past you have spent a great deal of money on things which you no longer value. This is an important lesson. It means that you are now beginning to understand the true value of money.

Now go and printout a blank cash diary from the spreadsheet section. Record in it every transaction you make whether by cash, credit card or any other means. An example is at the bottom of this page.

Successful budgeting is spending less than you earn.

Review

What did you find out from your cash diary?

Did you discover that there are improvements that can be made in your spending habits?

How many dollars could you comfortably do without on a permanent basis?

If you looked back at this cash diary in one year's time would you be comfortable in how your money was spent.

Now is the time to set up a successful, realistic, budgeting system that will work for you. There are various budgeting systems. We suggest you work through our traditional budget and then the automatic budget to see what works best.

 Example Cash Diary (21 kB)