Tracking expenses is the key to successful budgeting. If you are trying to save up for something as small as a new pair of shoes or something as big as a new house you need to get a clear view of your budget. By critically examining your spending on important items like rent and electricity, items that are important to you like streaming services or gym membership and items that you enjoy from time to time like social drinking or new clothes you can determine how much money you should allocate to each category and start increasing your savings. To succeed with your budget you must first successfully track your expenses. Here is how to make it happen.
Budgeting applications are making tracking your expenses so much easier. The key to winning with your budget is to ensure that the moment you walk out of a store or pay a bill you track that expense. By using an app on your phone, it is always with you and is intelligent enough to categorize your expense for you.
Some people find the smartphone too small to capture everything going on. If you prefer a computer spreadsheet then that is totally fine. Just ensure you are updating it regularly so nothing is going by without being captured. The budget system only works if all expenses are being tracked.
Pen and Paper
The pen and paper still have a role. If the smartphone isn’t doing it for you then an old fashioned pen and paper will work well. Keep one in your bag at all times and every time you spend something, write it down. When you get home that night you can add it all to your budgeting system.
There you have it. Three easy ways to manage your expenses. If you can get a view of how much you are spending you can start to set spending goals. This will allow you to make smart choices. Do you really need to go to the cinema this weekend because you have already maxed out your entertainment for the month? Take the power of your money back and start budgeting.