We all have expenses; it could be utility bills, daily household spending, paying mortgage, school fees and other daily expenditures. If you are a working professional or even a homemaker, it is quite a challenge to manage all your expenses effectively.
Hence, I wrote this article to tell you how you can manage all your expenses very easily. If you read and implement ideas given in this article then I am quite sure you could not only track your expenses but also do it effectively without spending much of your time.
Moreover, you do not need any accountant or financial consultant to take care of your expenses. You save a lot of money by taking right steps.
So here are few simple ways to track your expenses:-
1. Track Your Daily, Weekly and Monthly Expenditures
First is create an excel spreadsheet on your mobile phone or laptop. You need to track all your expenses. It really doesn’t matter how less you spend. You got to track your daily, weekly and monthly expenses. If you don’t then you will never know how much are spending every year.
Hence, create a column in excel for daily, weekly and monthly expenses, add date, items and list them one by one in the cell.
2. Create a Household Gross Budget for Every Month and Year
After you have created an excel spreadsheet for tracking your daily budget, now it is time to create an estimate budget for your household. The budget that you create for a month would be an estimate. It means you will be spending this much amount of money every year, plus or minus.
If your budget is $3000 a month for various things like food, grocery, transportation, bills etc then you must try to meet that fixed budget every month.
3. Create a Separate Budget for all Your Savings
Now you have created an approx budget for your month, now you have to have a separate budget for your savings. If you earn $5000 per month and spend $3000 from mortgage to grocery then your savings is around $2000.
Later on, you have to spend $2000 for various purposes like paying insurance, healthcare and other unforeseen things.
So always track your savings also.
4. Pay All Your Bills on Time and Avoid Extra Charges
Paying bills should be your first priority before food items and other grocery. Other things could wait but bills cannot. Always pay your bills on time to avoid penalty or extra charges.
Electricity bill, water bill, phone, internet etc you should pay on time.
5. Pay Close Attention to Credit Report
Credit report is very important for your financial freedom. Today much of your credibility depends upon credit ratings. Hence, always pay close attention to your credit report. You could get a free credit report once in a year at www.annualcreditreport.com.
Check it whether the report is accurate or not, if you find any mistake or anomaly then always raise a voice against relevant authority.
6. Get Your Credit Score As Soon As Possible
The best way to track your budget or expenses is by obtaining your credit score. Credit score helps you to understand how well you are performing financially.
Your three digit credit score tells everything about your financial background. If your credit score is positive like between 600 and 800 or even above 800 then you have a great future.
If your credit score is bad then you should start saving money and tracking all your expenses. Hence, getting a credit score is very important.
7. Clear All Your Credit Card Debt
Managing and tracking expenses would mean clearing all your credit card debt. You got to save money and clear all your credit card debt as soon as possible.
Do not live beyond your means. Spend only when you can pay it back. You could definitely improve your credit rating by managing and tracking all your expenses.
8. Examine Your Insurance Policy
If you have health insurance or life insurance then you have to premiums every month. Your premiums could be more than your entire grocery expenditure.
Hence, you have to track all your insurance money separately. You have to create plans how you are going to pay all your premiums without affecting your savings.
Therefore, creating, managing and tracking your expenses are very important.
9. Show the Payment You Have Made While Purchasing Something
Another best way to save some money is through taxes. You know tax rates are very high and you can save money on taxes if you spend your money wisely.
The first rule is always pay money through a banking channel. If you shopping then never pay cash, either use your credit card or just pay a cross check. Never give cash, if do this then you save a lot of money on taxes every year.
These small things could help your saving a lot of money.
10. Consult a Financial Planner or a Accountant
Finally, if you are really not able to track your income on your own because you expenditures are so huge then you could consult a financial planner or an accountant. However, hiring a financial planner is only possible when your income is very high and you cannot do it on your own.
So these were some tips to track your expenses humanly. However, you could also take help of technology.
There are hundreds of small and big apps that could help you tracking your expenses. You don’t have to waste time using these apps.
Let us look some of the apps that can help you tracking your daily and monthly expenses easily.
The first app that could help you track and manage your expenses would MoneyWise. MoneyWise could help you understanding all your financial standings.
The most useful feature is graph section, it highlights one section of data against other. Tags is another feature that makes this app cool.
You could select records that you would like to compare against other record. It also helps you to project your future expenses and how can you save money.
App is available for free and Pro Version also.
2. Financisto – Expense Manager
Second app is our list is Financisto – Expense Manager. This app includes a lot of shortcuts menu or icons. This really makes interface very easy to understand and use. “New Transaction” widget is the most prominent feature.
It will show a table where you can fill all your data in current transaction table. There is also a shortcut called “New Transfer”, it lets you transfer your money from one account to another.
Blotter is another feature that records your every single transaction under one page. This app is totally free and there is no paid version.
3. Easy Money
EasyMoney is a rich user interface app. It has inbuilt custom keyboard for users to type in numbers for any transactions. You could send notifications for upcoming bills and even color code all financial details.
You can also do split transactions. Easy Money is available for 30 day free trial period for pro version you have to pay $9.95.
4. AndroMoney Expense Track Money
Third app is AndroMoney. It is for android devices and laptop or PC. You can export your data to a CSV file and access by MS Excel or Google Drive also.
You can instantly audit your account on any web browser once you log into Google Doc account. It is available for free and paid version also. Paid version is just $2.99
5. CW Money Expense Track
CW Money Expense Tracker use speed recognition technology. You have simple pages for expenses, Income, Data Manager and Report.
You can save your transaction and proceed onto to next record easily. The pro version of the ad would cost you around $4.99
6. Cash, CoinKeeper, Colorful Budget etc
All these three are helpful tracking your budget and other expenses.
- Cash – Categories and Sub categories are given as soon as you open the app.
- CoinKeeper – You can drag icon into categories and create new transactions. There is also automatic budget planner.
- Colorful Budget – Colorful categories and pie chart help you understand your expenditure better.
So these were some of the apps that help you tracking your expenses. I recommend you to search for these apps on Google.
You have seen how you can track your expenses manually and if you find it difficult then you could also take the help of technology.