Christopher Ferrin
FIN 1050- DSD Reflection
As a part of the course work for my Personal Finance class, I was assigned to create a daily spending diary (DSD). The point of the DSD was to keep
track of all that I spent throughout the semester and show what you might need to change in your spending habits. From competing my DSD, I was able
to learn about how I should learn to better manage the money that I earn through doing work.
Prior to starting this assignment, I did not pay very much attention to how much money I used to purchase items that I wanted, but did not need. As
the semester progressed and I continued to track my spending, I saw how several of the items I had purchased were objects that I did not need. Looking
at the DSD showed me how I needed to show restraint in deciding what I was going to buy. I also saw how if I continued the spending habits I had, it
could cause me to have major financial problems, such as struggling to have enough money to pay the necessary monthly expenses.
From seeing how much I needed to change my spending habits, I noticed how essential a planned budget is, in order to be successful in life. When
doing the DSD it became one of the first steps for me in setting up a budget plan. I saw what I was spending money on, whether the items were necessary
or optional. I then started to decide how much of my income would be set aside for my monthly expenses, the future, and for entertainment.
I also learned the importance of earning and saving the money that you earned from some form of work and being able to monitor the money you
worked for. After being away from home and having to work for all of my living expenses, I was still a bit careless with the money I had earned. I didn’t
watch the balance of my savings account very carefully, which led to a loss of money. By doing the DSD I started to watch more carefully what I spent my
money on. This led to me monitoring my accounts and me making sure I would always have enough money in case of an emergency.
Overall, doing my Daily Spending Diary was beneficial to me. It helped me to see how I needed to change some of my spending habits, because
someone was not always there to monitor what I was spending my money. It helped me to see the need for well-planned budget to ensure that I was
prepared financially for any expected problems that could arise.
