One thing I have learned in the business world is if you want to improve something, measure it. Whether its widgets made per hour or agent time spent on the phone. If you measure it, it will improve.
The same goes for your finances. You need to measure your spending, saving, and investing. How do you measure your finances? It's really easy now with the advent of these online money management sites like Quicken, Mint, Wesabe, and Geezeo (See my Online Money Manangement site comparison). They make it really easy. If you do business at the right banks and credit card companies it's a no brainer. They will gather all the data right for you. All you do is setup your accounts and then login to get up-to-date info. It is then a piece of cake to categorize your spending and saving. These services also provide great graphs for see visually where your money is going. If online isn't for you then do it the old fashioned way by righting down where you spend your money. Either way, you have taken the first step to improve your finances.
After you are collecting data, look at the data at least once per month. Determine how much money you are spending for each category. Spending too much on dining out? Make a mental note and adjust your spending. Until you see where your money is really going it is hard to make adjustments. Look at every expense. Can you reduce it or eliminate it? How much do you spend on car or homeowners insurance? Have you got a quote lately? You can probably find a better deal. But until you look at where your money is going you will just keep going down the wrong path. This works for savings too. If your plan is to save $100 month, are you? Do you see your savings account growing each month? It will be easy to see if you monitor your accounts.
Remember, measure your finances to improve them.
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