Regardless of how much money you are making, it is still a smart decision to keep track of your finances. You want to make sure that you are not wasting your hard-earned money after all.
There are many ways to track your finances, whether through sticking to a budget or using apps, check out some of your choices on how you can keep track of your expenses for better financial management.
- Do reverse tracking – most people do the usual approach of just taking note of their expenses. but you can do the reverse of that. Instead of just noting down the expenses that you incurred, you establish a strict budget first and make sure that you do not go beyond that. This is a great strategy for those who are looking to save money for a special thing like a new gadget or a vacation. With reverse tracking, you are making sure that you will not spend money on unnecessary things.
- Put your expenses under categories – if you are not sure you like the idea of keeping a strict budget, then another way to check how much money you have been spending is to put them under categories. You can use the old method of just keeping an envelope of all your receipts. or you can create a spreadsheet if you are more comfortable with using a computer. All you need is a spreadsheet program. The good thing about spreadsheets is that you can print it out. You’ll also be able to do some computations and be able to see which categories you spend a lot of money on, then you can adjust if you find
- Keep all your receipts – to better track your expenses, you should make sure that you keep all your receipts. Put them in a file box, or even better, create a digital copy so that you even if the receipt itself is lost due to some unforeseen circumstance, you still have the digital copy. If you are determined to not just track your personal finances, but also your business (in case you own one), then keeping receipts is imperative. Especially during the season when it’s time to file your tax returns, you want to have all your receipts in order.
- Use apps to note all your spending – you can’t always have an access to your laptop to update your spreadsheet, there are many applications you can download on your smartphone. That way, wherever you are, you just simply open the app and take note of what you spend.
- Get the advice of experts – you don’t just track your finances just for the sake of it. You also want to do that because you are planning for your future. You might be planning for your retirement or setting aside money for your family’s future. Get better with financial management by asking the advice of experts, such as Birmingham Wealth Management. They can give all sorts of advice on taxes, portfolio management and many more.