Many of us have no answer to that question. We may or may not do a good job of keeping up with how much money we have in the bank at any given moment, but as far as where it goes between paychecks – who knows???
This is one of the biggest reasons for creating a budget, and not just any kind of budget, but the kind Dave Ramsey calls a “zero-base budget”. In this type of budgeting you are putting every penny that you bring in, into a category, a place. No penny left behind. This eliminates “extra” money that we tend to just throw out the window.
One of the best ways to start in this direction is to track your spending. Keep track of how much you spend on everything. Every time you spend a dime – write down what it was for. Every time you swipe that debit card – keep that receipt and add it to the list. Keep track of what you spend with your credit card as well (even though the use of credit is not recommended ;)). Categorize your spending – gasoline, eating out, groceries, clothing, entertainment, etc.
This allows you to really see where all the money goes, and it also gives you somewhere to start when you get ready to make a budget.
This is a very eye-opening experience for most people. Happy tracking!!
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