How To Track Expenses

A great way to learn how to track expenses is to keep an eye on your spending habits. When you document how much money you have, minus the items you need, you will always know where your money is going. The problem many people have is that they try to guess how much money they are spending. While they may feel this is an effective way to keep track of money, it isn’t.

Follow these helpful tips in order to learn how to track your expenses.

1. If you spend cash, it is absolutely necessary to keep all receipts. When you do, you will know exactly how much money you are spending. This way there is never any question about where your money is going.
2. Use your credit card sparingly. Of course there will be an emergency from time to time, but determining what is and what isn’t can help you learn what is needed. The problem with credit cards is that often people forget about their purchases until their bill arrives in the mail later that month. When you use your credit card, make sure to document your purchase.
3. If you have Microsoft excel, use it. This will calculate all of your expenses for you. You can create a spreadsheet and separate items into different columns. This can help you keep track of what items you can cut back on or eliminate. It will also help you budget more efficiently.
4. If you don’t have Microsoft excel, use a pen, paper and a calculator. This can be just as effective as excel, just more time consuming. Make sure to double check your adding and subtracting.

By following these simple tips, you will be able to know how to track your expenses. You will also be aware of where your money is being spent, which is an important part of money management.



Reference: 

http://www.getrichslowly.org/blog/2006/09/22/track-every-penny-you-spend/