The Best Way To Track Spending
June 14, 2022 | June Mckaig
When it comes to your finances, the way to keep them stable is to track your spending. But with so many options out there, how do you find the best way to track spending? Well, if you are trying to keep your spending in check, this guide can help you find the best way for you to track your spending. So don’t waste more time and get your finances in line with these tips.
What Is The Best Way To Track Spending?
Consistency is key when you’re trying to monitor your expenses. And when you need help getting started with tracking your spending, you need to make sure to have some good tips at your hand. Here are a few tips for you to choose to get started. Just remember, no matter which method you decide to choose, make sure to stick to it for at least one full month.
Use An Expense Tracker App
For those who want real-time updates on where their money is going, an expense tracker app might be the best way to track spending. The great news is that there are plenty of options for you to choose from (Mint, EveryDollar, and Truebill to name a few).
However, do bear in mind that you might have to give a few applications a go before finding the one that works best for you and your financial situation. Look for an app that connects to most of your accounts, categorizes your spending, and allows you to customize your budget to begin.
Create A Spreadsheet
Not all people are fond of mobile apps. Mainly because a lot of them don’t allow that certain level of personalization that you’re going for. Spreadsheets, however, are created by you for you. You can add any category and share the spreadsheet if you are splitting your expenses with someone.
You can find amazing spreadsheet examples online, but if you have the time and necessary skills to come up with one that is 100% crafted to your needs, we would definitely recommend doing that. You can add a ‘credit card balance due’ cell to keep track of how much you would have to pay off each month.
Give The Envelope Method A Try
When it comes to the best way to track spending, the envelope method could be an option for you. For a lot of people, the ‘envelope method’ is the best way to track spending on specific things – like your small pleasures, for example. Just so you have an idea of how this method works, we present to you the coffee example.
Let’s say that you love having a coffee to go before work. But recently you have figured out that you have been spending a small fortune on all these lattes. The first thing that you need to do is set a specific sum that you are ready to spend on coffee every month without feeling guilty.
The amount you come up with is the amount you put in an envelope and set aside for just this specific thing. This is your coffee budget for the month. Once you run out, you would have to start making your own coffee instead of getting it in a café. Just do this same thing for the rest of your expenses.
Be Ready To Make Adjustments
All these methods will be pretty much useless if you don’t use the results to adjust your budget. The truth is life is full of surprises that could negatively affect your finances. You might urgently need money for an unexpected repair or medical bills, for example. This means your budget needs to change along with your expenses. To be in control of how much you spend, make sure to:
- Involve the whole family.
- Stay disciplined (budgeting should become part of your daily routine).
- Stick to the method that works best for you.
- Build rewards into the budget to keep yourself motivated.
- Distinguish between the ‘wants’ and the ‘needs’.
- Start your new budget at a time when it would be easy for you to stick with it.
Get A Car Title Loan In Arizona For Emergencies
As good as having these tips for the best way to track spending is, you have to know what help is available for handling emergency expenses. If you have a car and a lien-free title, applying for a car title loan can help you handle emergency expenses. If you want to learn more, fill out the online form on our website to get a phone call from the nearest Arizona title loan location.
Start Tracking Your Spending The Right Way
With the right tips, you can find out the best way to track spending and help your finances. So if you need help tracking spending, check out these ways and get started right away. And if all of your efforts are going down the drain as soon as an unexpected expense comes up, a car title loan from Fast Auto Loans, Inc. can help. Fill out the online form now to begin.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.