Types of Expenses

• Car and rent payments generally remain fixed from month to month. Subtract your total fixed expenses from your monthly income to determine how much income remains to spend on discretionary expenses. Expenses such as food, clothing or entertainment can vary each month. Your discretionary spending may account for your budget shortfalls.
  
  

Spending Considerations

• Record your discretionary expenditures for a few months to see your spending patterns. Build a simple spreadsheet to track categories such as food, gasoline, entertainment and restaurant meals. Based on your research, decide on a reasonable monthly spending goal for each category. Enter your expenditures every day, and keep a running total.
  
  

Benefits

• If you track your spending daily, you can control your spending choices so you achieve your monthly goals. For example, you decide you can afford $200 each month for restaurant dining. By the middle of the month, however, you have spent $190. If you want to dine out again before the month ends, subtract your additional restaurant dollars from one of the other categories.