Calculating your spending is as simple as adding up all the payments you make. The only problem is-- if you want accurate records--you must make sure you have a comprehensive list. A journal can help with this, as you can note all your daily expenditures as they occur. You also need to take a good look at monthly, quarterly and annual expenses to be sure you have the full picture.
Things You'll Need
- Financial records such as checkbook, credit card statements and bank statements
- Small notebook to record expenditures
Use your journal to record daily expenditures such as coffee, food, newspapers, etc. Take the total expenditures over the course of a month and multiply that number by 12 and add the total to a separate list for annual total expenditures.
Review your checkbook and make a list of all monthly expenditures such as rent, insurance payments and utilities. Multiply monthly expenses by 12 and add them to the annual expenditure list. Multiply quarterly expenses by four and add that total to the same list. Some expenses, such as for tax preparation, may only occur once a year. Add that total to the annual list. Don't forget things like property taxes and holiday expenses.
Review your credit card statements for the past year and add the total expenditures to the annual expenditure list. If there are one-time payments, such as for a major repair, that are not representative of a regular expense you may want to omit them for planning purposes. Other expenses may be recurring, so add those to the total.
Add the totals on your annual expenditure list to get an annual spending total. Divide the total by 12 to get an average monthly spending total.
- Photo Credit Pennies on the Dollar - one dollar bill with pennies. image by Andy Dean from Fotolia.com
How to Calculate Your Monthly Expenses
Calculating your monthly expenses is an important part of determining your monthly budget. If you don't know how much you actually spend,...
How to Calculate an Efficiency Ratio
Efficiency ratios measure how effectively a business uses its assets and manages its operations. Asset turnover ratios, activity ratios and asset management...
How to Calculate an Annual Salary
Knowing your annual salary makes it easier to budget your expenses over the long term. But not everyone's salary is based on...
How to Calculate Uniform Annual Cost
One important factor in establishing a business is figuring out if you will be able to pull in more money than you...
How to Calculate Investment Spending
Most investors want a return on their investment, including business organizations. Just like individuals, businesses can earn an income through both operations...
How to Calculate a Daily Spending Allowance
Many people are on a budget, but it isn't always easy to know how much you can spend and still stay on...
What Is Total Expenditure?
Total expenditure is a measure used by companies to predict the amount of revenue made on a given product. It is a...