by A.W. Berry

Created on: May 25, 2007   Last Updated: October 27, 2009

Knowing how much you spend is quite important in to an overall financial strategy. This article will discuss the importance of spending awareness, ways to improve it and benefits associated with it. According to the Society for Financial Awareness (SOFA), knowing financial solutions and being ready for financial adversity is an essential element to living well. Moreover, If you don't know how much you're spending you might as well be subscribing to bank overdraft charges, bounced checks, and personal budget deficits.

Knowing how much is spent on what is a big part of a personal budget because budgets are essentially a price limit on various pre-planned purchases. It is essential to keep track of each purchase to stay on budget. Without a budget, personal finances can get out of control and potentially cause damage to a credit score and financial history. Some employers even access credit information to determine how organized and disciplined candidates are. What's more an out of control and disorganized budget can cause family problems and stress.

SPENDING AND FINANCIAL AWARENESS TIPS:

Even though it is important to know how much is spent on what it can get confusing and tedious with all the receipts, the cents, multiple sources of payment etc. With a little fine tuning, lots of people who don't like managing their money can learn to keep track of money with relative ease. Here are a few tips to help keep track of what you're spending.

SPREAD SHEETS: Use a spreadsheet such a Microsoft Excel and create a computer checkbook. At the end of everyday let the first thing you do at the computer be entering your purchases. Excel has a handy function called SUM that does the adding for you. All you have to do once it is set up is enter the numbers. To use it type in the expense for the day in a column one after the other. In the first blank space at the bottom of the column press the insert function feature. Look for the SUM feature and enter SUM=H4:M4 if you have 6 purchases in rows H through M in the 4 column. It may sound confusing at first but with a little practice you can design the spreadsheet to add for you.

DEBIT CARDS: Only use a Visa or MasterCard Debit card to make purchases. This way you'll always have a record of what you spent even if you lose the receipts. Additionally, debit card information is harder to steal than credit card information.

ONLINE BANKING: If you don't utilize online banking services already, it's very helpful. With online banking you

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