Tracking your spending and income is a crucial part of a budget. It will make your life easier if you keep good track of your finances. You are more likely to forget little daily purchases when you do not track and your budget will not be adding up. There are two ways to track your expenses – pen and paper, spreadsheet, and online tools like Mint or Quicken.
Traditional pen and paper is a classic way to keep track of your expenses. This takes little effort and is something you can have with you at all times. When you spend your money you can quickly write down the purchase, date, and cost. At the end of the money, you can use your pen and paper method to categorize and add up your expenses.
While pen and paper is an easy method that anyone can start, there are ways that technology can help with tracking your finances. Using a spreadsheet will give you the ability to track your spending from any computer or phone. You can put things into categories right away and have running totals throughout the entire month. This may make you more cautious on your next purchase if you are over budget. At the end of the month, your spreadsheet tracker will give you new insights into your spending.
A new way to keep track of your finances is through online tracking tools. These tools can be synced with your financial accounts. All income and expenses will automatically be tracked, categorized, and analyzed. You won’t need to remember to write down an expense, but you won’t be able to hide from any expense now either.