I know from experience that even the best-laid plans can lead to budget concerns. No one wants to get into credit card debt, and most of us don’t do it to live extravagantly. But staying out of debt can be a lot of hard work, so it’s essential to learn how to track your spending to avoid significant financial problems in the future. Here are three easy ways to track your spending and keep your finances on track.
Make a Budget
You’ll need to start with the basics. People get into trouble when they spend more than they make, so it’s critical to know your numbers. Make a budget, starting with your monthly income and subtracting your regular bills. From there, you can determine what’s left and apply it to other aspects of your life. Make sure you pay yourself first by saving some of the money.
Keep a Spending Journal
Next, keep track of your spending by simply writing everything down. If you guess what you have and what you’re spending, you’re bound to find yourself in trouble. Keep a small notebook with you always and write down what you’ve spent as you spend it. Or keep your receipts and take account at the end of every day or week. You can do this in a journal or a spreadsheet, depending on what works for you visually.
Download an App
There is absolutely no reason to reinvent the wheel to track your spending. There are several apps on the market today that can help you keep track of your financial health. Some of the most popular apps include:
All of the apps have different benefits. YNAB, short for “you need a budget,” is excellent for zero dollar tracking, so you know where every penny is spent. Honeydue is perfect for couples. And Fudget can help you track finances between asynchronous accounts. Do your homework to decide what works best for you.
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