How To Track Your Personal Expenses?
This might seem like a frivolous task but it is what helps you stay within your budget. So, we are going to tell you how you can do that, without any worry.
Tracking your expenses is one of the most important factors in making your budget work for you. If you don’t have any idea how much you have spent each month, you will not be able to say whether you have overspent or not.
Sometimes, even small expenses can cause you to blow your budget. If you are wondering whether you should track your expenses, here are a couple of reasons why:
Tracking your expenses will help you stick to your budget. If you don’t track your money, you will not be able to know when to stop spending in a certain category (for example, food or entertainment).
It can help you understand whether you have any spending issues. If you don’t track where your money is going, you will not be able to recognize any negative spending behaviors that you have.
For example, you might learn from tracking your expenses that you are paying for a Netflix membership every month while you don’t watch anything on that streaming platform. Hence, it is wise to cancel the membership or switch to a cheaper one.
It can help you meet your financial goals. Whether you want to set a goal to build an emergency fund, pay off debt, or set aside money for retirement or vacation, you are more likely to achieve these goals if you budget for them, create a savings plan, and track your spending.
What To Track?
We’ve been talking about tracking your expenses but that isn’t the only thing you should be tracking for leading a good financial life. You should also track your regular income, irregular income, and so on.
- Write down your income every month. Don’t leave the money you make from your side hustle if you have one.
- Whenever you are spending money, write it down. It doesn’t matter what the amount is; the important thing is you should be tracking all your expenses.
- Once you have started tracking all your income and expenses, subtract your expenses from your income and see how much you have left in your different budget categories.
- If you feel that you are spending more on entertainment, you should understand why that is happening and try to come up with a plan to not go over your budget.
How To Track Your Expenses?
There are a couple of ways to track your expenses. You can choose the one which is convenient for you and your habits.
By Paper & Pen
This is an old-school method but it works like a charm. Plenty of people stick to the pen and paper method to create a budget and track their expenses.
The biggest advantage of this method is that physically writing things down requires an active brain and active brains are really helpful when you are dealing with money.
This system focuses on paying cash for as many things in the budget as you can. You can pay for some things online such as loans, electricity, and credit card bills.
However, you will stick to cash for all the other expenses, such as groceries, restaurants, and entertainment. At the beginning of the month, you should put cash in envelopes labeled with your budget categories. You only use the cash that is inside the envelope for those categories.
By Computer Spreadsheets
There are plenty of people who like to track their expenses on spreadsheets because they are easy and convenient to use. There are plenty of templates online, that allow you to customize your budget, and you can do all your calculations on the sheet itself.
When you create an account with Koshex, the platform allows you to link your bank account to your Koshex account. Then, whenever you spend money to purchase something, the platform will automatically categorize your spending and give you an overview of your expenses.
Under our ‘Expenses’ tab, you can see how much you are spending in each category. The platform will also offer intelligent insights into your spending and tell you how you manage your finances better by adopting better financial habits.
Multiple apps and platforms help you track your expenses and also, categorize your spending. Some apps allow you to put a limit on each budget category, so when your expenses exceed the limit, the app will give you alerts and remind you to stay within your budget.
Our platform, Koshex, helps users get intelligent insights into their spending habits. All you need to do is create an account and link your bank account.
Every time you spend, the platform will assess your spending and show you ways where your finances can be managed in a better way.
In The End…
If you like to track your expenses seamlessly, create an account with Koshex today. It will take you less than 3 minutes to do so and the platform will track all your expenses efficiently.
You can get an overview of your expenses, which will help you understand where you are overspending and how much you should be saving to achieve your goals.
You can choose your goals and risk tolerance, which will prompt the platform to choose the right investment solution for you.
Koshex is the one-stop platform for all your financial needs, with the platform offering everything from brilliant financial insights to excellent saving and investment options.
You can get this all for free just by creating an account today. Head over to Koshex to track your expenses and better your financial life today!