If you’re not following a budget, you may not be seeing where exactly you’re spending your hard-earned money. You think you spend most of it on food, but a quick look at your statements could show that you’re spending more on luxuries or credit card payments. Without knowing these things, you could be trying and failing to cut back on unwanted expenses. The first step to being more financially literate is to know where your money is going, and to make improvements in your spending habit.