Keeping track of money has become quite a challenge in the fast-moving world. With the advent of digital money transfer, transacting has become a work of the left hand. However, keeping track of our expenses and savings cannot be stressed more. They are of utmost importance; we cannot leave our funds hanging and not create better and stable financial health for ourselves. We have come up with some of the best and most feasible plans for tracking your expenses to help you not overspend your money in the long run. Follow the tips and tricks and save that extra note in your wallet.
Having a budget is a must when you plan to keep track of your expenses. In the times when clicking on some buttons, we can transfer money from one person to another, shop for our favourite stuff and buy tickets to a movie show; managing money is not easy, and hence having a budget will come in handy.
List Your Income
Have a list of all the sources of income that you have. Also, note down your partner’s income if your plan is to save money together. Salary, profits earned in a business, profits earned through investments can be considered income.
Do you know about pile of pennies?
List Your Expenses
Another in the list is to list down your expenses. Know what your needs are and what luxuries are. Create a proper budget on how much expenses are necessary for you in a month, including your rent, EMI’s transport, food, and more.
Subtract your expenses from your income
Now that you have both your income and expenses cleared out, all you must do is subtract both from each other, and that will be the amount you save in a period. It can be used as an investment fund, a saving amount of money that needs to be used on something that sits as your big dream.
Categorize Your Expenses
Expenses must be categorized in two major sections so that the funds can be allocated between the two in the ratio required by you. The two major sections can be needs and luxuries. The expenses under requirements can be rent, EMI’s, transport, food, school fees, electricity charges, etc. The expenses that fall under luxuries are shopping, movie tickets, dining out, and more. While you keep track of the same, you will better understand where you can cut off the expenses and save some cash.
Check your account statements
Checking your account statements from time to time will paint a picture in your mind about how much and where you are spending your funds. Open a zero-balance account online to track your expenditure and for added benefits like no maintenance fees on using the last penny in the account as well. Keep track of your account each week so that you understand your spending saving capacity accordingly.
Use an Expenses-Tracking App
Various expenses-tracking apps are available in the market that can also track the savings, income, and expenditure of a person or a group. Add your details to such apps and save yourself from all the pressure you might have to go through while looking after your funds.
Set a Regular Rhythm for Tracking
Tracking your expenses is not a one-day game, and it must become your daily habit in the long run for sustainable results while creating financial management for yourself. We suggest you set a regular rhythm for tracking your expenses and income as that gives the best picture of how to manage your finances in the best possible way. Click here to know more.