Using Quicken to Save Money

Money management is one of the reasons I am capable of surviving in the DC area on $25,000 a year. After getting Quicken on my computer, I downloaded every bank transaction I had done that was still online, and went thru and categorized everything. I then started using my check card or credit card for everything, so that when I downloaded my bank transactions that week I could keep track of where my money was going. When you first start you will be amazed to find out what you really do with your money. One of the first things I noticed was the amount of money I spent at places like Starbucks, McDonalds, 7-11, and other fast food places.

I realized that if I brewed my own coffee, brought my lunch to work a couple days a week, and cooked my own food most nights, that I would save hundreds of dollars. I knew that those places cost me money, but I didn't realize how much it added up to. This doesn't mean that I stopped going entirely. If I am in a hurry I will still occasionally wind up at a fast food place, or if my caffeine addiction kicks in I'll get the hankering for a caramel machiato, but I have cut back a lot on all of these things, and I keep track of how much I spend at places like this.

One of the best ways to save money is to just know where it is going in the first place. Another great thing about Quicken is that it figures out what you regularly pay. Stuff like rent, phone bill, student loans, etc pops up near when it is due. You can then look at a cash flow forecast, punch in any other payments you are expecting, and you can figure out how much money you will have for months to come. Want to plan a vacation in August? Well start tucking away money in April for it and keep track of how much you have away for the vacation, and when it comes around you are ready.

Using computers to track expenses can make life much easier.