Graph Your Expenses to See Where You Can Cut Back

When you physically plot your expenses on a scattergram (or simply visualizing it), the process help you understand each of them better and give you a place to start formulating your plan."So you're trying to tighten your budget, and you want to know which expenses to cut first. Money blog Moolanomy suggests graphing your expenses to figure out how to prioritize them.

Moolanomy writer Pinyo Bhulipongsanon calls it a "scattergram"—a graph that shows two characteristics. In this case, the characteristics are: frequency and necessity.

When you physically plot your expenses on a scattergram (or simply visualizing it), the process help you understand each of them better and give you a place to start formulating your plan."

After graphing your expenses this way, you can better understand how to cut out the luxuries, go after recurring expenses and reduce frequency. For more detail on this "geeky" frugal strategy, check out his full post.

credit: LifeHacker