The best tips on tracking your expenses is for you to consider that it’s not actually the big expenses that take up the budget, but sometimes its an accumulation of the smaller expenses. Sometimes, the small purchases you make can add up and end up even bigger than what you’d expect. Because you spend so little on inconsequential things, you don’t feel the expense as heavily. However, if you sum it all up, you’ll realise the need to significantly reduce your impulse buys.
That is why tracking your spending is essential. When you see everything laid out in detail, you’ll know how much you’re actually taking out of your savings. Here are some ways to easily track your expenses and save money:
Keep all the receipts.
The real key is to list the expenses as they occur, so you don’t miss anything. You may be observing your spending habits but if you forget some of your transactions, the record is inaccurate.
Remember the most basic rule of keeping all the receipts. Don’t lie to yourself and intentionally leave out some expenses because that defeats the whole purpose of tracking your spending.
Categorise your expenses.
Take time to analyse your spending to save money, and tracking where your money goes will certainly help. Fixed expenses like rent, utilities, and other payments remain constant. However, the ever-changing expenses like dining out, purchasing new items, and travelling can throw you off. By categorising these, you can understand where you would need to adjust your spending habits.
Take all your subscriptions into account.
Subscriptions renew automatically, and unless you make the effort to cancel them, they will automatically charge you. You need to track your subscriptions and see which ones are being used regularly. That includes gym subscriptions, various streaming services, and even magazine subscriptions. By crossing the unnecessary expenses out, you will save a lot of money that you can spend more wisely.
Double-check your bills.
You need to know your usual electric and water usage so that when they spike out of nowhere, you can recognise the discrepancy immediately. Read your electric meter to see whether the power company may be mistaken. You may have an inaccurate or broken meter, or it can be a sign that you have old appliances. Spikes in water bills can signify leaky faucets or pipes, which will keep costing you if they are not fixed immediately.
Use expense trackers.
Technology has continuously helped everything more convenient, including mundane tasks like tracking your expenses. If you are the type who needs the extra hand in managing and tracking the finances, you can make use of a budgeting application.
By using a simple app, you can easily input every expense on your phone, and it will automatically show you how much you spent. It can even show you graphs and detailed accounts of your spending habits.
By recording every single purchase that you make, you have an awareness of how you spend your money. Identifying the small daily expenses and correcting any spending issues will help you save money in the long run. Good luck!