Look at you go!
Are you wanting to save up for a car or home? Are you wanting to pay off credit cards or student loans?
Those goals are completely possible and by continuing to build your budget, you’re well on your way to success.
Day 2 – Categorize Purchases, Part 1
Knowing where your money goes is one of the key pieces to achieving your financial goals because these are typically adjustable. While your income amounts are pretty stable, your purchases can be adjusted.
Financial pro tip steps:
- Download banking activity for November or December in an Excel format. December is a great sample because you can create a baseline for annual Christmas purchases.
- Each row is a transaction of money coming into your account or going out.
- On the right-most side, there should be a blank column. This is where you can input a high-level category for each transaction. Here are some example categories to get you started:
- Debt payments (credit cards, student loans, others)
- Car insurance
- Car payments
- Phone bill/internet
- Subscriptions (Amazon, Netflix, Hulu, and others)
- Home necessities (toiletries, shampoo, razors, and others)
- Gifts (birthdays, special occasions, and Christmas)
Categorizing expenses for your budget is no easy feat and you persevered!
Grab a treat to reward yourself and #TreatFinancial so we can celebrate your HUGE accomplishment for today!