Want to keep a better eye on your money? Get a reality check by keeping a handwritten money ledger for an entire month. It doesn’t have to be fancy—you can keep your money log in a small notebook, inside your planner or agenda, or on a legal pad you keep at your desk.
The only thing you have to do is write down the amount you spent, where you spent it, and when. If you purchase a variety of items in one place—say you pick up groceries, an item of clothing, and some home improvement tools from a big-box store on Saturday—break down your receipt by category to get even clearer on where your money is going. Be sure to update your log each day, if not immediately after you make each purchase. At the end of the month, add up what you’ve spent in each category and think about how each one makes you feel. Does your spending seem lopsided? Do those purchases make you feel happy, sad, or neutral?
On its surface, keeping a handwritten log doesn’t prevent you from spending money. What it does help you do is reflect on what you’ve spent and how you’ve spent it. It can help you recognize patterns in your spending or categories where you may be spending too much. Then, you can use your ledger to help you make your budget or re-evaluate it to match your priorities.