Four Ways to Keep Track of Your Expenses

Managing your expensesNowadays, the global economy presents a variety of challenges that impede people from enjoying their life and achieving financial soundness. From continuous price hikes of products and services, staggering rates of unemployment, and billions of dollars worth of debt, it has become nearly impossible to stay on track of your financial goals and objectives.

Now, how do you gain footing on your finances? One of the simplest ways to do this is through keeping track of your money. Tracking where your money is drained, how much money you are able to receive on a monthly or annual basis, and identifying suitable money-saving strategies are the most powerful ways for saving income. So, how do you go about doing it? Here are the four best ways to keep track of your expenses.

Budgeting

Targeting your household budget is a great way to keep track of your expenses. Start off by listing every expense for a timeframe of two months. You aren’t on a budget yet and thereby you should spend money as you typically would. This will offer you with a genuine indication of where all your income goes.

Break this two-month plan down and split it into two classes – fixed and variable costs. The former type involves loans, mortgages, credit cards, monthly utility bills like cable TV, internet connection, phone, water, etc. Meanwhile, a variable expense encompasses clothing, food, transportation, entertainment and childcare.

Using Spreadsheets

Spreadsheet software including Microsoft Money and Intuit’s Quicken are ideal options, yet some can find them too complex to operate, particularly for novices.

Mint.com is one of the most common online money management programs you can find today on the web. The program enables you to create an anonymous account and include banking information and investment accounts securely and conveniently. In the case of Mint.com, you are able to view all your accounts in one easily navigable and simplified web interface. You can view your balances and transactions all in one place. The data can be accessed either via computer or mobile phone.

Keeping track of finances with Mint.com

Smartphone Apps

There are various smartphone apps that can be used to track expenses. Depending on your mobile phone, such as iPhone or Blackberry, you will find that your app store features an array of finance tools for consumer expense-tracking needs. Smartphone apps include Expense Manager (Android), Expensify (iPhone, iPad,…), Pro-on-the-Go Expense, e-Mobile Money, Money Plus and Bill Tracker.

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