TRACKING YOUR EXPENSES

3 Easy Ways to Track Your Expenses 

Keeping track of your expenses is a very integral part of personal finance and you can’t effectively manage your finances without actively tracking your expenses. Tracking your expenses doesn’t only help you see where your money goes, but also reveals to you your spending patterns. 

Hi, it’s your personal finance friend again and I’m here to walk you through the process of tracking your expenses. In my last post, we talked about having multiple sources of income, and I shared some tips on how to go about it and I’m sure you have started working on them, right? So let’s talk about tracking expenses.

What does it mean to track your expenses? It’s simple it means to keep note of your transactions at regular intervals to know how much you are spending, what you are spending on, and when you are spending it. 

So, three ways to track your expenses:

1. Track as you spend

Under this approach, you carry around a notebook and pen to record every transaction you make at that moment. You can also record them on your phone notebook if carrying around a pen and book won’t be easy for you. I recommend this approach because it helps you to be attentive to how often you spend and can also encourage you to think carefully before spending any money since you are recording them as soon as the money goes out.

2. Track at the end of the day

Under this approach, you don’t record your expenses instantly after spending, you are allowed to wait till the end of the day before recording all the transactions you made during the day. You can decide to record it before bed or immediately after you get home but just make sure you record all the expenses of the day. 

3. Set a regular rhythm for tracking your expenses 

After choosing which method to use in tracking your expenses, then you decide whether to record it daily or weekly but at the end of the day what matters is your consistency and discipline because no matter which method you choose to use if you are not disciplined enough to follow it, it will be of no use to you. 

I advise that you decide to track your expenses regularly for the next week because I will be talking about budgeting in my next post and if you don’t know what you are spending your money on you won’t be able to make a realistic budget for your finances. 

So that’s all for today, I hope you got value. If you did let me know in the comment section and gist me on how you are creating your multiple streams of income and if you have questions too, throw them to me in the comment section, I would love to hear from you. 

Bye for now, see you soon