How you should keep a track of your expenses to enjoy a healthy pocket
Oftentimes, our bank statements haunt us. They seem like that sinking ship which is hard to save and you, ‘the captain of the ship’, have no control over it. What would you do in such a situation? Would you let your ship sink or find an alternative to bring it back to life?
Each one of you already possesses the potential to save even a half sunken-ship yet you are in search of a lifeguard. Let me tell you something- you don’t need a lifeguard, instead, your ship is a beautiful one and it’s worth saving it.
How if I tell you that giving little thought to your finances can bring a 360-degree change in your life? You can change your state of life from being miserable to a happy satisfied individual. A part of your life is governed by money and henceforth, it becomes imperative for you to take charge of your finances.
There are numerous ways for you to track your expenses. Here I am listing some of the tested methods to keep a track of your budget and expenses along with an insight on how you should do it.
Rely on money management apps
Today, we have ample number of money management apps available out there. These apps are designed to help you track your expenses and give insight into your spending pattern. You can download any of these apps and track every penny you have spent. To name a few, you have InvoiceBerry, Money Manager Expense & Budget, Spending Tracker, Wallet- Finance Tracker and Budget Planner, etc.
Know the ‘expense issue’
Having cluttered finances denotes issues with your money management. When you decide to track your expenses, you will know where all your money is going. You may be spending way too much on grocery, phone or simply anything else and having empty pockets by the end of the month.
Tracking expenses is the initial step to identify your expense issue. Once you know the extravagant spending, you can cut down the money spent on the same in the future.
Prioritize your expenses
By tracking expenses, you get to know the value of the money spent. You also understand the difference between ‘needs’ and ‘wants’, which is a necessity for when you aim to manage your money well.
You can’t cut down on needs but wants are in your control and so does the money spent on it. Being sensible and swiping the card at the right place has been a great mantra for many who excel in money management.
Save & Invest
Money is born from money. While you are in the process to know and cut shot your expenses, you should save some of the money to invest further. There are various investment plans that you can opt for, such as mutual funds, stocks, bonds, etc. However, it is important for you to get know-how of the market, rate of return and other details before you invest your money.
Foresee potential crises
There is an added advantage of keeping track of your expenses,and saving money. You have the capacity to handle unexpected and sudden expenses. You also gain the sight to foresee potential expenses and can plan ahead for them. Henceforth, when such expenses dangle on your head, you don’t panic; rather handle them smartly.
Most of you forget that the money you earn is in your control and so are the expenses. You tend to think that expenditures are unavoidable and there is no way for you to save any money for yourself. Period! Have a second thought to your perception and start anew with newer and better money management techniques.