Tightening your belt by using your checkbook

After reading my title you may be thinking, how do you reduce spending by using your checkbook? Aren't you spending money when you are writing checks or using a debit card? Absolutely; however there is a huge benefit to using your checkbook when paying for items; you have a wonderful record of how much money you spend, where you spend it and when you spend it. This is invaluable information when you are trying to get a handle on spending habits or if you need to reduce spending.

At various times when faced with questions that might change my financial situation such as switching careers, taking on new debt or dealing with the rising costs of living, I take out my checkbook and I browse through my register to see where I have been spending money. From my review I make two lists: one of the obligations that are set in stone, like my mortgage and car payments and the other list is made up of all of the other payments that I made that reflected purchases where I could control the costs, or maybe not make the purchase at all.

By doing this little exercise, I'm always a little surprised by how much I've spent or overspent in one area or another such as groceries, clothing or entertainment. If it is time for me to tighten my belt these are a few areas where cutbacks can easily be made. Other areas for saving money may include services that are no longer necessary or may be reduced like phone services or television services.

So if you are concerned about financial changes or if you just want to find opportunities to save, get out your checkbook and use it to review your spending records. It's a great first step for getting to know about your finances firsthand.