How much money have you spent this month on clothes? How much money in fast food last month? And how much in light? Or in food?
You have no idea, do you?
Nothing happens. You are part of the 99% of the population that does not keep track of your expenses, so you are in good company.
And how can there be so many people who do not know where their money is spent? Well, being a bit rough … because it is a co * azo.
But to start saving one of the first steps to take is to keep track of your expenses. Not knowing where your money goes and not knowing what spending habits you have to change it is impossible to save … or at least it is much more difficult.
And so, in order to overcome this challenge, and start saving more and more, in today’s article we will see:
Why it is important to keep track of your expenses daily.
Different methods to do it.
Why is it important to keep track of your daily expenses?
Keeping track of your expenses is important because it lets you know where you spend the money.
Just as when you try to lose weight, you need to know how many pounds you weigh at the moment and where you want to go; By saving you need to know where you are spending right now and how much you want to save. Because only this way you can better target the money to the categories you really want to go.
After all, how many of us have spent more than we believe in shoes, entertainment and eating out, without realizing it?
Let’s look at two opposing examples that explain why it is so important to keep track of your spending even if it is minimal:
1. Imagine a family of 5 people whose monthly food expenses are approximately 600 euros. Without knowing the actual expenditure of the family, a goal of 450 euros is set to spend on food per month, as a budget. Of course, this limit is easily exceeded. Now the normal thing is that they feel frustrated and decide that a budget is not worth anything.
2. Now imagine a person who does not have a budget but who already has a habit of saving a good percentage of their income every month. He realizes that in recent months he is a little more drowned and that it costs him more not to use a little the savings of the beginning of the month.
Go to Dinaru and see that there is a spending warning in the “Restaurants” category. In this way, make a mental note to try to get out less to eat out and make more meals at home.
Different methods of controlling your daily expenses
The important thing to keep track of your daily expenses is to find the method that works best for you. That being said, there are several different methods you can try:
Use a smartphone to record expenses: A great way to record your expenses with cash is to quickly write down all your cash purchases (or any other type of payment) on your smartphone.
It is especially useful for anything you buy without your credit card or debit card, since you can easily have a large expense category called “Cash” without knowing where the money goes.
You can also use the traditional pencil and paper method that also has the charm of the traditional method. You choose.
Debit Card / Credit Cards: Try to make all your purchases with debit cards or credit cards. This is possibly the easiest way to keep track of your expenses, since all of your card operations are available through your bank account or card statements.
It is a very good method for those who can pay all their bills in full but not for those who pay in installments, especially with credit cards.
Keep receipts: It’s very simple and straightforward, but it can be a little disorganized if you forget to record the expenses or properly keep the receipts and invoices. If you use smartphone there are applications that allow you to save your receipts. For example for iPhone devices you have Piikki and Warrantify for Android.
For example, just to see that you have too many receipts from El Corte Inglés you can deduce that you have to cut your expenses there.
Tools to develop a budget: You can use from traditional spreadsheets in Excel or online tools like Moneytrackin, for example, to track your expenses on a budget.
Using Dinaru: Possibly the simplest method. The free tool of saving of Dinaru obtains all the expenses that you do and it orders them by categories. Everything automatically. Categories that you can customize yourself at your whim.
It is important that when you set the categories you put names that mean something to you. For example, you can have a great category called “food” but it does not really let you know exactly what has.
For greater ease you can use the spreadsheet with the following format, please use one of the following formats that suit your use:
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