How Do You Rate Your Financial Security?

If someone were planning on trying to make a budget, I have suggested for them to begin by writing down all the money they actually spend for a time period of at least one and if possible two months. I feel this gives them the opportunity to learn from where they spend their money and how they may be able to cut corners. We all know that those quick impulse buys and a Coke here and there add up. It's fine if you have the money in your budget for it, but it's best to know from the beginning where your money is going. Sorry to go on here, my question to you is - if you are speaking to someone on beginning a budget, what amount of time do you think is best for them to keep track of their spending?

One month minimum. But two is better. Since many impulse habits are just that -- impulse -- it can help to have two, or even three, months of spending considered. And don't forget to remember those bills that fall every six months or so. Look at your insurance policy premiums. If you only pay them once every six months, or only once a year, make sure that you average it out as a monthly expense.