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How to Save money. Use the Seven Shoe Box Method.

Updated on October 21, 2013

Here is a very practical way to get a handle on your spending/ First get your hands on seven cardboard shoe boxes(or boxes of similar dimensions. Right !. You can cover them in adhesive plastic covering to make them attractive .Now that you have got the seven shoe boxes mark them Monday each separately with one day of the week from Monday to Sunday. Okay you have got that. Good.

How to save money using seven shoe boxes

Now every day every time you spend money get a receipt. Keep it in your purse until the end of the day. At the end of the day put all the receipts into the corresponding shoe box which is marked Monday,Tuesday etc... At the end of the week you reconcile each day by adding up all the money you spend each day. You can of course break this down on a summary sheet of paper into categories. Food, Rent, clothing, coffee etc then put all the figures into a Financial Journal which you can get at the newsagent.

Once you have done this after two weeks you will start to get a very detailed picture of your spending habits. You will know things financially about yourself that you never knew before. With me for instance I was spending up to 80 to a hundred dollars a week in coffee shops. That amounts to 4-5000 dollars a year. Enough to go on a European Holiday. Of course I would normally consider a European Holiday out of my reach- yet if I stopping drinking coffee in coffee shops I would be able to take a trip every year year.

So the real secret if that is the correct word is to find out exactly where your money goes each week. Most people do not know and this is the vital difference when preparing a fake budget and a real budget. Until you really know your spending habits of the past you will be unable to modify your spending habits of the future.

I have found this technique with the shoe boxes so simple yet so effective anyone can do it. You do not need to buy accounting books, nor employ an accountant Just get hold of seven shoe boxes which most shoe shops will just give you. That's all for now. Good luck with your European Holiday

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    • barryrutherford profile image

      Barry Rutherford 7 years ago from Queensland Australia

      thanks ellinor !

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      ellinor 7 years ago

      I like this hub, a overseas trip is better than coffee everyday in a coffeshop

    • barryrutherford profile image

      Barry Rutherford 7 years ago from Queensland Australia

      Lecie I guess you know yourself you need to find some way to increase your income now.

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      Lecie 7 years ago

      hi your advice is great for someone that can afford the coffee shop. i can't even afford that. my money goes on bills, essentials like toilet paper and food. i get the cheapest food i can find. for instance i get a six pack of bagels for under $1.50 and i get 6 lunches out of it. still i don't have enough to so much as go out to eat once a month. do you have any advice for me? other than get more money because i am still waiting on a publisher for my book and until that happens my income will stay what it is.