You’ve got your job or business running smoothly and within your control, and you are earning cold cash every 15th and 30th day of the month. The most surprising thing that can happen is when you reach into your pocket, hoping to buy a $10 ice cream for your favorite nephew when there’s only a $3 bill left. It is so fun and easy to spend, that you often forget your budget limitations. Before you know it, you still have a week to go without any money to splurge. Before something like this happens, you may want to start keeping a detailed monetary record of money that comes in and goes out. There are several methods to track your daily expenses. Here are a few.
Purchase a small and handy notebook or a tickler exclusively for listing expenses. This notebook should able to fit in your pocket for a hassle-free note-taking anytime, anywhere.
- On each page, write categories such as food, transportation, water and electric bills, miscellaneous and anything else that might describe where your money goes.
- Check the exact amount of money you have in your wallet and pocket before you leave the house and note down that total. Keep tracking expenses by category. It is important that you take note of your expenditure right after purchasing to avoid forgetting afterwards.
- Keep track of all your daily whereabouts. When you go to the grocery store or when you go out to eat, write down the expenses on the respective pages of your notebook. Ask for receipts and keep all of them in one place. If you can't get a receipt, jot down the amount on your tickler.
- At the end of the day, get the total from each of the category. Here you will find out where your money goes extravagantly. Deduct what's left in your wallet or pocket from the total you had earlier. From all your receipts, activities and expenses list, and the remaining cash, you should be able to identify where your hard-earned money is spent.
Make use of online tracking software.
- Spending Diary is an online service that offers a very easy technique to track daily expenses. It allows you to create expenditure data, for a quick identification on the overall amount spent on different categories. You can instantly see your expenses for the day, week, and month or for a particular period of time. The site has great features to help you make an effortless tracking. Visit spendingdiary.com and see whether it suits your needs.
- Chipper is another online site that provides easy-to-use software for tracking expenses. Aside from logging in your expenses, it also allows you to lay down reminders for monthly bill payments for any event you plan on having. It also has the ability to record your daily expenses through your mobile phones. You need not log in for your every single input of expenses. For further details, check out mychipper.com.
It is crucial to take time to track down where your money is spent. It is common for you to remember the pricey things you bought or the hefty bills you regularly pay, but you tend to ignore the small expenses, which ultimately total into a major amount at end of the day. Once you practice keeping record of your daily expenses, you should make a move to cut back in areas that are less important.