How to Track Spending

Get ahold of this and track spending!

You do not have to wonder where your money went. You may be surprised to learn how easy it is to track spending. Once you have a handle on how to track your spending, you will have greater freedom to tell your money what to do instead of simply watching it disappear. Having information can give you a guideline to create your plan to track spending.

Things You'll Need

• Notebook
• Pen
• Paper
• Computer
• Software
• Receipts

Instructions

1. Write down your beginning balance at the start of the day. This number can be what you have alloted for the day or what is in your wallet to help you track your personal spending.

2. Keep your receipts from a single day with you to record at a later time. Receipts are a great way to track spending and see what eats your money. Store the receipts in a briefcase, folder, envelope, notebook, pocket or purse. Keep them handy and store the receipts where you will not lose them. If it is easier, use a credit card to track spending. Here, you will see online and on paper exactly what your spending habits are.

3. Store a notebook in a purse or briefcase and use it to track spending at work or out running errands. Track how you are spending money throughout the day from receipts or write down your spending as you go. If you do not have a notebook handy, use a piece of paper or calendar. Just as long as you write it down for easier recall later.

4. Collect all of your spending data and subtract your spending from your beginning balance for the day.

5. Use cash for most retail spending. Save checks and credit cards for spending on monthly bills. Store cash in envelopes with the names of expenses on the outside and when that money is gone, it is gone. This is an easy way to track it without having to record information each time you find yourself spending money. You can form your own categories for the envelope system.

6. Use Microsoft Excel, Money or Quicken to track spending if you wish to use a computer. You can set aside a time each week for data entry when you are paying bills. A convenient feature to this software is most financial statements can be downloaded quickly to track spending, income and upcoming bills.

7. Examine all of your spending habits after the first 30 days that you track it, and tweak areas. Be honest about what you are spending, when you spend money and the reasons. It takes approximately 30 days to create new habits and break old, less desirable ones.

8. 

   Evaluate your spending in your financial software after a 60 days. You can create pie charts, graphs and break down spending into percentages categorically to track spending even further and see it broken down, customized for you.

Tips & Warnings

• Do not include expenses that are reimbursed by work or other organizations.

• Ask experienced individuals or even professionals for help if you feel it is needed.

• Watch and listen to personal finance shows to give you more ideas and for consumer alerts.

• You can also use your credit and bank statements to show expenditures, although you may not remember or recognize the charges.

• Be honest about your spending. Gather together all bills, know what you owe and how long it could take to pay any debts you have.