Are you a money manager or a money watcher? Step 1

My family loves to go beachcombing and we also love lifting up the rocks and seeing all the living things that scurry out from under them.  One of the things that I notice at the beach is how constant the tide is, it effortlessly goes in and out bringing new life to the beach.
Several years ago I used to be a money watcher.  I would watch money go in and watch it go out, much like the ocean tide, but never really managed it.  Every night I would come home from work and call the bank and check my bank balances.  It made Jody crazy because it seemed to be the focus of my life.  This was before the days of online banking and it seemed to take a bit longer to get the desired information.  The problem was I never really did anything about it.  It was because I really didn't know what to do.  So as a result, even though I was watching, we overspent.  I wonder if it's because we were caught up in a shallow tidepool, not able to and we just didn't know how to get out.  Does this sound like some of you?  We want to show you how to stop the ebb and flow, keeping more in and less going out, and give you control back so you can be a money manager instead of a money watcher.  Over the next few posts we'll show you how you can be a more effective money manager.

Step 1 - Make a record of all your expenses
For the next 2 weeks or even a month keep track of everything you purchase.  Carry a small notebook and a pencil around with you; wherever you go write down all your expenses.  If you go out to lunch, write it down.  If you pay a bill, write it down.  Even if you buy a pack of gum or a can of pop, write it down.  At the end of the 2-week or 1 month period review the items in your list.  You'll be surprised what you discover.  This will establish a spending baseline for you and help you to see where your money is going and where you need to make adjustments.  We encourage you to start making a record and let us know how it's going, including the challenges and triumphs.

Thank you,
Greg and Jody Roche
Be Frugal Live Wealthy