Money Mistake #1: My Money Is Disappearing
No one starts the month planning to fritter away a small fortune, but that’s what can happen when minor expenses spiral out of control. It’s not just shopping at Saks that gets you into trouble. Seemingly innocent purchases — $15 jeans at Target, a few things for the kids at a two-for-one sale, the occasional Frappuccino — can do real damage to your bottom line.
What does it take to waste $10,000 a year? Just $27.40 a day. “You can undermine some of your most important goals with purchases you’ll never remember,” says Suzanna de Baca, president of Private Capital Solutions Group, a Des Moines, IA, investment advisory firm.
The fix: Know thyself financially. First step: Take five minutes and read through your latest bank statement. If the transactions seem unrecognizable and you have no idea why you went to the ATM a dozen times, spend a week tracking your spending (longer, if possible).
You can use a notebook, keep receipts in an envelope, try software like Quicken, or check out an online budgeting tool, like these two money sites we tested. Whichever you choose, find a money-tracking method that lets you see your purchasing patterns with fresh eyes.
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