Question

1. How can the use of a personal spending diary assist you in achieving financial goals?
   
2. Which categories did you include for your spending diary? Also, indicate why you did or did not choose to track additional items on a separate basis.
   
3. What did your spending diary reveal about your spending habits during the time period covering this first installment?
   
4. What areas of spending would you consider changing?
   
5. How can your spending diary assist you with career planning activities?
   
6. How can your spending diary assist you with decisions about monetary asset products/accounts?
   
7. How can your spending diary assist in building and maintaining your credit reputation?

Answer 1

(A)  A spending dairy is a documentation of every single expenditure you make on a daily basis over a period of time. For instance, over a 30 day period.

In order to be successful in tracking your spending, you need to commit to writing down every single transaction you make every single day for the period of time you choose to use a spending journal.

A great way to do it is to add enough detail so when you come back at the end of the day or at the end of the week to review your spending, you remember what it was that you spent money on.

(B) Categories included in spending dairy are Food, Household, Loans, Rent, Travel, Electricity, Miscellaneous and Education.

It's highly recommend that you record expenses in categories other than posting without category transaction. Because when you combined the expense in Categories you can see your expenditure under various categories and take steps to control the expenditure.

(C) The spending diary reveal that the expenditure on food and household are increasing substantially because of some unnecessary expenditure that could avoid. If the expenditure diary available we can track that unnecessary expenditure.

(D) The categories where expenditure patterns changing are household, Loans and Miscellaneous expenditure. It's because of the aggressive campaign launched by companies and offered discount during fastival season. There is a discount on interest rate upto 1% when you take new loan in this season. So taken loans and this will create additional burden. Due to advertisement the household expenses increase because of buying new clothes this fastival season.

(E) The spending diary assist in career planning also because it will help you to take close watch on your expenditure and alert when you spend aggressively. Also it will help you in saving so,you can plan your further education.

(F) The spending diary assist me that I have to take fresh loan and repay the all old loans this fastival season because there is a discount upto 1% on all new loans and I can repay the old loans and save money with discounted loans. Hence help decision on monotary front.

(G) Spending diary helps me to maintain credit reputation as it clearly shows when I need to repay loans. It helps me to maintain good credit scores. Spending diary has categories where you can find your spending under various categories.