“Ask Brianna” is a column from NerdWallet for 20-somethings or anyone else starting out. I’m here to help you manage your money, find a job and pay off student loans – all the real-world stuff no one taught us how to do in college. Send your questions about postgrad life to askbrianna@nerdwallet.com.
Q: It seems like all my income disappears by the end of the month, and I want to know where it’s going. What’s the best way to keep track of my spending?
A: You’ve already come to an important realization: Understanding your expenses will give you greater control over them.
Many people have a tough time getting to that point. Two-thirds of U.S. adults don’t keep a detailed budget that tracks income and expenses, a 2013 Gallup survey found. That’s often because they’re afraid of what they’ll find, says Maggie Baker, a psychologist in the Philadelphia area and author of “Crazy About Money.” But a deep dive into your cash flow can be the first step toward finally feeling like you’re on course financially.
“There’s a certain empowerment that comes with facing the truth,” Baker says.