Here’s an exercise help you take a look at your spending habits:
For one week track your spending. (If that’s too much then try for a few days). For every item mark down whether it is an Investment (I) or an Expense (E).
Investment – Spending that can bring you a return later on (can help what you have grow).
Expense – Spending that reduces your assets (makes what you have less).
How you justify what each spending item is called is up to you but be honest with yourself. The point of this is to see how you spend and what it brings to you.
Are there items you spend on that are a drain on your finances that you could maybe cut out? Are there some items you spend on that are helping you that you could concentrate more on?
More than anything, look at your spending and see what and why you are getting what you get. this exercise isn’t meant to judge just to help you realize where your money and time are going.
I think it goes without saying that you probably want more investments than expenses.
Try it out and let me know how it worked for you and if you discovered anything about your spending.
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It’s amazing to me how often we apply the word “investment” to things that are actually expenses. While some things could be considered emotional investments, many things are just expenses.
Miranda’s last blog post..Unbroke’s Money 101: “I’m Broke as Hell…”
Yes. A simple look at what you buy can tell you a lot about yourself. At least if you are willing to be honest about it.
I think I generally end up more in the expense category – largely because most of what I spend on is food and other consumables.
I think I will give this a shot and see what the actual results are though.
Matt @ My Financial Recovery’s last blog post..Benefits Of Enrolling In A Health Savings Account
I’m pretty liberal with this. Food is a necessity. It’s up to each person to figure out if they need that $25 lunch or the $2.50 lunch. You need food but at a point it becomes an expense. This is where you have to be honest with yourself. Do you just WANT that choco-mocha-latte or will it help you get stuff done?
An investment is a choice by an individual . As for me, i rather invest for things like a property that has sufficiently low risk and provides the possibility of generating returns over a period of time.
Burnsville Personal Trainer
.-= Burnsville Personal Trainer ´s last blog ..Eagan Personal Trainer and Boot Camp Instructor Shares The Evolution of Fitness Training =-.
Gone are the days where you can just spend spend spend. Every red bull, coffee, donut and the like must be accounted for.
Oh well, at least my investments will like it 
)
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