How to Track Personal Finances
Tracking your expenses will show you exactly where you spend your money. By writing down every purchase you make and bill you pay, you can see if your actual spending falls in line with your estimated personal budget. Once you start tracking your expenses, you can look through your records to find ways to cut back, which will help you save money. You can track your money using a plain piece of notebook paper and a calculator or with a software system that lets you create spreadsheets.
Other People Are Reading
Instructions
-
-
1
Divide a spreadsheet or piece of notebook paper into three columns. Add the title "Date" to the first column, the title "Expense" to the second column and the title "Cost" to the third column.
-
2
Save your receipts when you make purchases in cash or with credit. Keep the carbon copy of any checks you write, or save the slip from the bill that shows the total amount.
-
-
3
Write your expenses down on the notebook paper or type them into the spreadsheet. Add the date of purchase in the date column. Add the name of the expense or purchase in the expense column. Add the total cost in the cost column. Repeat this process once a day or weekly, making sure you do not miss any purchases.
-
4
Store your receipts, copies of bills and carbon copies of checks in a safe place.
-
5
Add the number in the cost column on every line together once a month to get your total monthly expenditures. You can start a new expense report each month by using a new spreadsheet or notebook paper, or you can continue using the same tracking report from month to month.
-
1
Tips & Warnings
You can divide your spreadsheet or notebook paper into categories to simplify the tracking process. For example, dividing your purchases by groceries and food, transportation and housing expenses will help you sort your expenses and locate problems areas in your spending.
Do not forget to account for automatic checking withdrawals. Make sure you write down any purchases that automatically deduct from your checking account, such as scheduled online bill payments, gym memberships or other monthly membership fees.
