Learning Curve

Lab 2 - Main Sources of Expenses Test
An expense is the money that leaves your pocket. They are all expenses that you have to incur in order to maintain your lifestyle. Examples would include credit card payments, housing loan repayments, car loan repayments, utility payments, grocery bills, taxes, travel and entertainment and all other personal expenses.

In determining your financial position, you need to track all of your expenses. One of the main reasons that people discover that they do not have much saved up when they retire is because they never control their expenses. They lose track as to how they spend their money every month. The one pattern they constantly observe is that they always do not have enough money to support their lifestyles. As a result, they may have to incur additional debt to pay for their expenses as their earned income is insufficient to pay for all of their expenses.

One way to track your expenses is to write down every item that you spend on. JOT-IT-DOWN! - It is tedious but in the long run, a rewarding task, as you will be able to keep track of what your hard earned money is spent on. If you are unable to track all items, make sure that you at least aware of all payments made to purchase the more costly items. You will find it shocking to discover that a majority of you are genuinely surprised once you’ve discovered how much money you have spent on certain items. Please refer to the table below on how to build your financial statement.