If You Can Never Seem To Save Up Money Or Hit Your Financial Goals, It’s Probably Time To Start A Money Journal: Here’s How To Use One

Emily Chan |

Nov 1, 2023

baranq - stock.adobe.com - illustrative purposes only, not the actual person

If we’re being honest, most of us like to stay in the dark about where our money is going. With technology, it’s easy to spend money unconsciously, and as a result, we’re losing precious dollars to things that aren’t even that important to us.

If you’re wondering why you can’t seem to save or are failing to hit your money goals, it may be because you’re not keeping track of your spending. Balancing your budget can be one of the hardest things to perfect, but using a money journal can make the learning curve a little easier.

Not only does a money journal allow you to physically record all your finances in one place, but it also can help you build better spending habits, strengthen your knowledge about finances, and totally transform your relationship with money.

It’s never too late to start a money journal, and you don’t need much to create one—just a pen and a piece of paper will work. Whether you’re looking to save up for a house, pay off your student loans, or build a retirement fund, a money journal can lead you to financial success.

Figure Out Your Income And Monthly Expenses

First, you’ll need to figure out exactly how much money you’re earning every month and what monthly expenses that money is going toward. Most of the time, people are more aware of their income than anything else. Then, you can see what you have left over to spend. Refer to any bills and your credit card statements to come up with accurate numbers. This first step can be a very enlightening experience.

Jot Down All Purchases And Do Some Reflection

To maintain a money journal, the biggest requirement from you is to consistently record all your purchases, no matter how small they may seem. Even if it’s just a couple of bucks on a pack of gum, it’s important to include.

Jot down your purchases in a bulleted list. Eventually, you can move on to creating a detailed spreadsheet, but for now, keep it as simple as possible for yourself as you work on building a new habit.

baranq – stock.adobe.com – illustrative purposes only, not the actual person

In order to practice reflection, write about how you felt each time you swiped your credit card and how you feel about it at the current moment. It will give you a clearer picture of how you spend your money.

Use Money Journal Prompts

Just like other types of journaling, such as gratitude journaling, you can use money journal prompts to gain insight into the areas where you need improvement. To get your thoughts flowing, you can answer some prompts on the days you don’t do any spending.

For example, think about how the adults in your life talked about money when you were a child, what your biggest fear is regarding money, or if you’re envious of the financial success of others.

Review Your Spending On A Weekly And Monthly Basis

When it reaches the end of each week and month, add up the total amount of money you spent. How does it make you feel? Do you regret some of the purchases? Or were they all well worth it?

In addition, set some goals for the next week or month and plan out what steps you will take to meet these goals.

Perhaps you are trying to save a certain amount of money by a certain time. Cutting out your morning Starbucks runs and making your own coffee at home can help you retain a few extra dollars.

Practice Daily Affirmations

Affirmations may seem silly, but they can actually help retrain your brain to conjure up more positive thoughts. And who couldn’t use a little more positivity in their lives?

Repeat your favorite affirmations to yourself every day. It will help to strengthen your mindset and have faith in yourself and your abilities to become the person you wish to be.

Some examples of daily affirmations include: