Issue Date: October 12, 2008
MoneySmart |
SHARON EPPERSON |
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Track everyday spending
A brand new visa study finds that Americans "misplace" about $3,000 in cash every year. Where does the money go? For guys, it's often gadgets -- the latest iPod, iPhone or BlackBerry, says M. Katherine Liola, a financial adviser with Ameriprise, while women often don't realize how much they spend on their kids.
Women 34 and under fritter away the most: $4,004 a year.
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To STOP "mystery spending":
Review purchases regularly. If you can, pay with your debit or credit card (no, this is not an endorsement for Visa, but it makes sense to have a record). Your statements (and online record, if you bank online) will detail all purchases, so you can quickly see what you're spending -- maybe overspending -- on. Otherwise, keep all receipts to solve your own "hot buttons."
Set a budget for regular purchases, like groceries, and stick to it. Resist impulse buys like pricey prepared pasta dinners, if boxed spaghetti and a jar of marinara better fits your budget. After the back-to-school binge on kids' clothes, minimize new purchases, especially with holidays and birthdays to budget for.
Plan for savings. Researchers at Old Dominion and Rice universities found that planning to save in a short time frame (one month) gets the best results. You'll be able to see progress without feeling too pinched.
CNBC correspondent Sharon Epperson is the author of "The Big Payoff."
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