Today – Having a Better Insight into Your Spending
Having a Better Insight into Your Spending Allows You to Save More Money
Managing money has always been an uphill task, especially for those who do not realize how to spend it. However, it’s never too late to take stock of the situation, understand the value of budgeting, prioritize, and keep track of your spending patterns. Making a budget based on your income is one step towards managing money, but having an insight into your spending is the key to manage your finances efficiently. Unless you have complete control over your spending, you are liable to get off-track in the pursuit of your financial goals. Below are a few steps that you can take to have complete control over your spending:
Use One Source to Pay.
Instead of using various means of payment, including cash, credit card, debit card, PayPal, Monese, etc. it is recommended to use only one source. Using money, however, entails the manual recording of the expense, if you are bad at keeping a manual record, you may want to use a debit or credit card, where fees are automatically recorded.
Use the Envelope System.
It is an old school method to track your spending. At the start of the week, you can have various envelopes labelled with different heads of spending with the amount of cash kept for it. You automatically keep track of the money using the envelope system because when cash in the envelope finishes, that means you cannot spend on that particular head anymore.
Regularly Check Your Account Statement
Regular checking of your account statement will let you know where you are spending more. Is it within the budget limits you have set in, or it is exceeding that limit? You can amend the course of the expenditure accordingly by having an insight on your account statement.
Use Various Apps
There are several free apps available to set budgets and track spendings. Such apps provide various analyses to help you improve your spending and saving habits.
Track budgetary Goals
Keeping a regular track of goals set in the budget allows you to control your spending and save money.
Documenting Cash Expense
It may sound boring, but you have to keep a pen and a notebook with you while you are out shopping. It will allow you to pen down all expenses immediately before you forget it.
Use a Spreadsheet
The use of computers and various spreadsheets is a digital way of keeping track of your spending. It will automatically do the math for you and would also help you follow your expenses regularly.
Why Should You Track Your Expenses?
Getting on top of your spending and budget allows you to:
- Avoid any debts
- Avoid unforeseen costs
- Improves credit rating
- To plan a mortgage or loan
- To find out areas where you can save
- To save money for holidays
Benefits of Keeping Track of Your Spending Include:
- Revealing areas where you can save money
- Allowing a bigger picture of the expenditure to re-prioritize your financial goals to get optimum saving
- Shifting of payment from within different spending heads according to your needs
- Having control overspending not only helps you save money but also reduces mental stress
- Inculcating the habit of spending wisely
- Saving for rainy days and holidays
Better Insight into Your Spending is a feature post you might also find my post on single parent money-saving hacks to be useful