Tracking your monthly expenses is vital to maintaining a healthy cash flow. Create a spreadsheet or get a blank notebook and record your expenses, savings, investments, and luxury to keep track of where your money is going.
You can do these three simple tips to track your expenditures.
1. Regularly Get Your Account Statement and Transaction History
Identify your money habits by recording all of your accounts, including your savings and checking account, as well as all credit and debit cards you have. Looking at these factors will help you pinpoint where you’re spending more and discipline yourself.
According to Annamaria Lusardi, from the George Washington University School of Business, she recommended all these monitoring tips for a healthy monthly cash flow — identifying your incoming and outgoing.
2. Sort Your Expenses
Start grouping your expenses. Whether it is essential or non-essential.
You could find that impulse buys at the department store are costing you a lot or maybe you’ll realize you’re paying for recurring subscription services that you could live without. Your spending will consist of both fixed expenses and variable expenses. Fixed fees are less likely to change from month to month. They include mortgage or rent, utilities, insurance, and debts. You’ll have more room to adjust variable expenses like food, clothing, and travel.
3. Use A Budgeting App or Money-Tracking App or Software’s
Budgeting apps are designed for on-the-go money management, letting you allocate a certain amount of spendable income each month depending on what you’re taking in and what you’re paying out.
These types of apps will work if you’re willing to log your purchases, put in the time, and stick to your budget. These tips will eventually help you track your monthly and yearly expenses.
