Do you find yourself working hard and not knowing where your money is going? Are you unable to save for a goal? Try using these steps to get a handle on what is flowing in and out each month to see where you could make adjustments.

1. Track all of your spending for 90 days using whatever method works for you (spreadsheet, notebook, phone App, or one of the many free tracking sheets online).
2. Records all sources of income.
3. After tracking your daily spending, break your expenses down in to these categories: necessary expenses (essential and includes utilities, rent/ mortgage) and discretionary expenses (subscriptions, TV, and other items that are desirable but not essential).
4. Next, separate out your monthly debt payments, which include credit card bills, auto payments, and personal loans. Determine a monthly amount that will result in paying off your debts as soon as possible, with a goal of two to three years.
5. Establish your financial goals, including short-term goals (within 1 year), mid-range goals (2-5 years), and long-term goals (over 5 years). Write down your target date, total needed, current savings, additional savings needed, and how much you will need to put away each month.
6. Come up with a monthly budget that includes necessary expenses, discretionary expenses and debt payments using all of the categories within your 90 day tracking. Look at your expenses and design a proposed budget.
7. Revisit your budget to see how well you are following your proposed budget and assess progress you are making toward your goals. Track your spending for another 30-60 adds while using your new budget. Determine where you are overspending and make adjustments. Food, entertainment, and shopping are the most common areas to trip us up.
8. Will you reach your short, mid, and long-range goals if you stick with your proposed budget? If not, where can you make adjustments? Also, aim to save three to six months’ income for emergency purposes.