Don’t let your finances drive you insane, keep a spending journal

Know where your cash goes and keep your budget in line by tracking your expenses and writing them down

If you’ve been keeping track of where your money goes, you may be surprised at how often you buy coffee, gum or a mid-afternoon snack. How about how often you go into shoe stores, tool stores or restaurants? See what a spending journal does?

It makes you aware of where your money is going. (If you haven’t started using one yet, all you need is a notebook, a pen and the will.) Someone smart said, “Insanity is doing the same thing over and over again and expecting different results.”

Tired of being financially insane? Ready to make some changes?

If you’ve been unconscious about your money for quite some time, it’s probably going to take effort to develop new habits. Don’t get impatient with yourself; that will only distract you from the task at hand. After all, you have a lot to learn. You must: Distinguish between “needs” and “wants.”

Tell your friends and family about your awakening and the changes you’ll be making.

Recognize the impact marketing and advertising have on you, and resolve not to be influenced.

Create a balanced budget and track your expenses daily or weekly.

Recognize the importance of saving both for emergencies and for the long term.

Do the hard work it takes to come up with a debt repayment plan, and execute that plan.

Learn to see not only today’s immediate needs, but the things you will need and want in the future.

Show your children how to take charge of their money so they don’t make the same mistakes you did.

Be willing to seek help if you feel overwhelmed or become lost along the way.

Change is never easy. There will be times when you fall off the rails. You’ll lose track of a receipt and kick yourself. You’ll skip the comparison-shopping because you just don’t have time. Or you’ll buy something that’s not in your budget because, well, you just did. You’re only human, so you’re bound to make mistakes. The key is to right your rocky boat quickly and tack back on track.

And if you want the change to stick, you must be able to identify at least one benefit you’ll gain by changing how you deal with your money. If you can hold that idea front and centre in your mind — if you know what’s really important to you — you’re much more likely to stick to the new game plan.

Gail Vaz-Oxlade is host of Til Debt Do Us Part, Prince$$ and Money Moron. She blogs daily at gailvazoclade.com. Follow her on Twitter @GailVazOxlade