How to track your expenses
By Parasolla | Updated on Nov 10, 2022
How to track your expenses
Trucking the expenses is the key to managing and saving your money as spending randomly will waste your money and keep you shocked about how your money left your pocket!
To solve this problem, we have prepared this article to teach you how to track your expenses in the right way to manage your money properly.
1. Make a plan to track expenses
The first thing you should do to track your expenses is to create a comprehensive plan to help you know where and when you spend your money.
When we talk about creating a plan, we mean that you should create a strategy to manage your expenses. This means you should allocate a total monthly expense for everything. After that, you should divide that money into smaller categories such as allocating money for your monthly payments like the house rent, internet, and electricity.
Also, you should allocate money for other things depending on your situation such as GYM subscription, Car fuel, food, etc.
Making a plan at the beginning of the month will help you save more money and track the month's expenses perfectly. Also, it will help you know if you spend your money on any worthless thing.
2. Register your daily expenses
Making a plan doesn’t mean that you succeeded in tracking your expense but you should stay on the plan and register all your daily expenses to know where you spend your money because it is impossible to remember everything by the end of the month.
So, instead of getting shocked about the money you spent later, you should register all your expenses daily at night to avoid forgetting anything.
Registering your daily expenses will help you track your expenses perfectly and improve your spending habits because you will know what mistakes you do and how you can improve yourself to build better habits.
There are too many ways to register your daily expenses but we recommend you use Microsoft Excel to save your expenses as it is easy to use and you can track your expenses easily later.
3. Create a budget
Creating a budget is very useful if you are single or married. When you have a specific budget, you can get a notification if you exceeded your budget limit.
When we talk about creating a budget, we mean that you should allocate money for all your money expenses. For example, you are alone and you want to allocate $3000 as a budget for this month.
That was a simple example, you should be aware that building an appropriate budget depends on your situation and your monthly financial expenses.
Creating a budget will help you and your family members understand that you have limits for your expenses. Also, it will motivate you to find new ways to save more money as you can track your monthly expenses easily.
4. Check your account statement periodically
Checking your bank account statement from time to time is an effective way to keep your eyes on your expenses especially if your family members use your credit cards for shopping.
In this way, you will be aware of the money that is spent every day and what strategies you can use to reduce your expense and spend it in a better way. Also, you can track the expenses that consume most of your monthly budget. Hence, you can find solutions to stop or solve those financial mistakes.
5. Analyze your monthly expenses
One of the major points of tracking expenses is knowing how you spent your money and what you should do with your family to spend less and save more.
So, by the end of every money, you should analyze all the data that you have such as the registered daily expenses, your bank account statement, and your family expenses to know what financial mistakes you did and how you can solve them to build better financial habits and improve your financial situation.
Also, after tracking your monthly expenses, you should try new ideas to help you manage your money in the right way.
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