Let’s review MoneyYOYO rules.  First, YOYO – you’re on your own when it concerns money.  Second, always save some part of your income.  Third, start with small goals.  Fourth, big and small sacrifices will be necessary to begin saving.

So, how do you get started?  The first step is to determine how you spend your money today.  If you rarely use cash it is simple to track expenses through your credit card, debit card and bank account.  Banks and credit card companies have expense tracking tools you can use on their websites.   PNC Virtual Wallet is one of many bank tools or you can build a spreadsheet of your own.  Review 6-12 months of spending to create a useful record.

If you use cash frequently, tracking past expenses becomes a little more difficult.  Track where your cash is being spent for the next month.  That will give you an estimate for budget purposes.  Going forward It is easy enough to track spending on your phone using a wide variety of apps like Virtual Budget or Spending Tracker.

Are you the kind of person that needs to know every detail of your spending or can you live with less detail?  How many spending buckets do you want to track?  Housing, transportation, food, insurance, entertainment and other are the primary buckets, but you can refine your spending in many more categories.

The end of the year is a perfect time to take on this task to help you create a budget and savings goals for 2014.

Financial fact:  Read about the U.S. Budget deal going through Congress this week.

Comment:   Other sources for financial literacy http://www.moneyunder30.com

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