Money has a way of coming and going and you don't even notice it. Cash flows in and out and you think - Wow! Where did it all go? This is because you are not in the habit of keeping track of where your money is and where it is going. We are going to change that habit so that we can be a more money smart person.

The easiest way to keep track of it all is to use a program that you can put all of the information into and it can tell you where your money is going - without you doing any of the math. In order for this to work, you will need to be diligent in keeping the program up-to-date with your income and outgoing expenses. To make this a habit, tie it to one you already have, like update it with your morning coffee or right after you finish dinner. Put in all pay and any receipts you have. Don't forget any point-of-sale debit receipts too. Those coffees at the convenient store add up and need to be a part of the money expenses you are tracking.

If you don't have access to a program, you'll need to do the math yourself. Keep track of your income and expenses in a notebook. Make one column for each: the date, the item, category, expense, income. The categories are something you assign, like clothing, entertainment, gas, utilities, rent, food. After a month you can add up all of your expenses and figure out what percentage you spent on food as opposed to entertainment. Again, make this a habit by attaching it to another habit.(see the paragraph above)

Keeping track of all of your income and money expenses is the first hurtle of becoming a money smart person. You can do it!