6 Concrete Ways to Track Your Spending, and Why You Need to Do It
If spending less than you earn is the fundamental tenet of personal finance, then tracking your spending is the fundamental way to actually make that happen.
See more here on why spending less than you earn is so important. Here we’re going to discuss how you can make sure you’re doing some level of spending tracking, whether you’re a budget-ista or you’ve never thought about money in your life.
You might not even be aware of what you are spending or even earning, and that’s the first step. To be financially successful, you need to have some awareness of what you’re spending. But before you get nervous, let me clarify. I’m not at all saying that you necessarily have to set a budget or write down every single purchase, or anything very intense like that.
I’m not at all saying that you necessarily have to set a budget or write down every single purchase, or anything very intense like that.
(If those methods work for you, that’s great.) All I’m saying is that you need to have some approximate (and accurate!) number in your head for how much you spend every month, and there are multiple ways to do this.
The key here is to find something that is sustainable for you and gives you the information you need in (close to) real-time. You can use pencil and paper, an app, notes on your phone, whatever you like.
Let’s go through some more involved options first.
Detailed/Greater-Involvement Options
Use YNAB to budget out categories as detailed as you need. At any given time you’ll know exactly how much you’ve planned for any given category. (Going to the grocery store? Check your groceries category to see how much you can spend.) This is actually what I personally use now, and I love it.
Use your own spreadsheet, like this one that I made - to track your own categories and spending v income. (Make a copy of this Google template spreadsheet here.)
Simpler/More Chill Options
Write down each purchase in the notes app on your phone and add it up regularly.
Use a simplified spreadsheet - just set one number to spend each month or pay period, and count down from that on anything you like to spend (to heck with detailed categories!). Here's the Google template.
3. Link accounts to Mint and just look at the income v spending graph a few times a month.
4. Use an app like Albert that tells you how much you can spend at any given time. (But remember - strategy first, then app, and not the other way around!)
Also note that it’s ok to experiment with different methods! Maybe one more involved method makes sense for you for a while as you’re just getting started and figuring out where you’re starting from, and maybe you move to a more relaxed method as you get into a habit.
Don’t be afraid to pick a more involved method if that works for you - so many people do this even if they don’t talk about it, and this is a part of adulting. :)
Need help getting started with tracking your spending or deciding which option is best for you? Reach out to Sarah at momentumfinancialcoaching.com to schedule a free 15-minute chat!
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