Tracking your spending on a regular basis can give you an accurate picture of where your money is going and where you’d like it to go instead.
CHECK YOUR ACCOUNT STATEMENTS
Pinpoint your money habits by taking inventory of all of your accounts, including your checking account and all credit cards you have. Looking at your accounts will help you identify where you’re spending. You have to have a sense for your monthly cash flow – what is coming in and what is going out.
CATEGORIZE YOUR EXPENSES
Start grouping your expenses. Some credit cards automatically tag your purchases in categories like department store or automotive. You could find that your morning Starbucks run is costing you a lot. Or maybe you’ll realize you’re paying for recurring subscription services that you could do without. Your spending will consist of both fixed expenses and variable expenses. Fixed expenses are less likely to change from month to month. They include mortgage or rent, utilities, insurance, and debt payments. You will have more room to adjust variable expenses like food, clothing and travel.
USE BUDGETING APP
Start grouping your expenses. Some credit cards automatically tag your purchases in categories like department store or automotive. You could find that your morning Starbucks run is costing you a lot. Or maybe you’ll realize you’re paying for recurring subscription services that you could do without.
EXPLORE OTHER EXPENSES TRACKER
Not a fan of applications? A spreadsheet is another valuable money-tracking tool. You can find a variety of free budget templates online. If you have more complex financial portfolio, you can buy a software.
IDENTIFY ROOM FOR CHANGE
As you track, be ready to make adjustments. It’s worth your time to keep tabs on your monthly expenses because of what you’ll uncover. Tracking expenses can be very valuable for finding out what is really costing you, and what is not as bad as you thought.
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