Expense categories are an easy way to determine what you spend the most money on. These categories may include things like housing, utilities, groceries, health care, and entertainment. Aim to log your expenses daily, weekly, or biweekly. Consider color-coding your tracking system, so it’s easier to find information. For instance, you may have food expenses marked with green pen and travel expenses in gray. [1] X Research source
Consider transferring the information from your notebook to a computer spreadsheet at the end of each month or year. This way, you’ll have double the records. If you don’t want to make your own logbook, try finding one online. Simply search “finance logbook template” and find a design that works best for you.
To create a personal budget, start by listing your fixed expenses each month (like rent and utilities) as an expense on the first day of each month, along with your expected monthly income. Then, subtract other expenses or add other incomes as necessary throughout the week or month. If you don’t want to create your own spreadsheet, no worries! Simply search “financial tracker spreadsheet template” online to download a spreadsheet that works best for you.
Create separate columns in your checkbook for tracking credits (money coming in) and debits (money going out). Compare your bank’s withdrawals and deposits with your checkbook every 2 weeks to make sure everything’s a match.
Start by totaling your expenses and comparing the sum to your monthly income. If you’re spending more than you’re making, identify the source of your overspending. Total your spending by category to identify where your money is going. That is, combine the totals spent in each expense category and compare them to each other, or divide the total of each category by the total of all of your monthly expenses to get a percentage of total category expenses.
These apps pull in all of your financial information from bank accounts, retirement accounts, and other sources while also tracking your bills and reminding you to pay them: Quicken, Mint, Personal Capital, and Pocket Expense. These apps track your finances and work as analysis tools but don’t require bank account information: Mvelopes and You Need a Budget.
Keep your receipts so you can comb through them at the end of the month or year. Try marking on your calendar when to check your bank and credit card balances, so you don’t forget. [8] X Trustworthy Source Mind U. K. -based mental health charity focused on providing advice and resources to anyone facing mental health problems. Go to source
For example, maybe you’re a Target lover and always go in for one thing but come out with a cart full of things. Set yourself a monthly budget for Target and mark it in your finance tracker.
This trick doesn’t just help you manage your “fun money,” but it can also help you spend less and save money.
Try the envelope-saving method by labeling envelopes with what you’re saving for. For instance, one could read “concerts” while another says “new wardrobe. ” Every time you get a paycheck, slide $5 into each envelope and watch your “fun money” grow.
Most financiers recommend saving at least 10% of your income for emergency savings each month.
