Track Expenses for Better Financial Freedom

Posted on by admin Comments (0)

track expenses

Track Expenses

Have you experienced this scenario before?

Your bills are all paid, you’ve spent a little cash on a few things, then suddenly, at the end of the month, you find yourself in a deep financial rut with no clue how it happened.

Those little expenses add up, don’t they?

Two trips a day for premium coffee, a pile of new clothes, and before you know it you’ve racked up quite an expensive tab for yourself.

Now’s the time to trim down those spending habits before it gets out of control. A little more attention to detail is all that’s required to whip your budget into shape.

Track expenses and your spending habits with these handy tips for putting yourself back on the road to financial freedom:

1. Define the variables

There are certain expenses that don’t change much, like an internet bill, monthly petrol for the car, or your mortgage payment. Your grocery bill is one that varies according to what you buy each month, however. Keep track of your month-to-month spending to be sure you’re comfortable with how much you’re spending.

  • It makes sense to plan meals for the coming week ahead of time, then make a grocery list and stick to it. You’ll be holding yourself accountable for those purchases, and you’ll minimize the impulse to spend more than you want to at the grocery store.
  • Entertainment expenses like takeaways or movie purchases are another way to trim a fat budget. If your family likes to eat out, takeaways or to purchase films from Foxtel or your local video store, create a specific amount in your budget each month, and stick to it.

2. Make use of a register

Making online payments for your bills is a luxury, but it sometimes leads to you losing track of how much money you sent to whom or how many items you’ve bought online recently.

Use a register to track all your payments and purchases, including the ones you make online. Keep your register by your computer table at all times. It’s important to log every dollar you spend to get an accurate picture of your financial situation.

3. Avoid online shopping

If you’re making lots of spur-of-the-moment purchases on a specific online retailer’s website, refrain from using it so often. You can even use online tools to help minimize and track your online purchases, as a way to add more discipline into your spending habits.

  • LeechBlock is a free add-on program for the Firefox web browser. Basically, it allows you to block certain websites for a certain period of time. Using this helpful add-on and a little discipline, you could block Amazon.com for every day of the week except Wednesday, and only allow yourself 10 minutes to view their inventory of items.
  • Additionally, LeechBlock works well for hindering online gambling habits, visits to adult websites or to control the amount of time your children spend playing addictive games or visiting social media sites like Facebook. These are the types of restrictive measures that eventually puts money back in your pocket.

4. Cash only

Another helpful tip for curbing spending habits is to leave credit cards at home when you leave the house to go shopping. Bring cash only.

If you’re planning on meeting a friend for lunch, bring only $30 cash to avoid any impulse purchases you might make and forget to track later.

  • If you’re concerned about emergency situations, keep $100 (out of sight) in your glove compartment. If you use this emergency cash fund for something else like a pair of shoes or a new hat, deduct the amount you spent from your petty cash allowance to encourage yourself to be more disciplined.

Track expenses no matter how much you earn

It makes no difference how much you earn. If you don’t track expenses, you can find yourself in a financial hole that’s difficult to manage or rise above. This is one important reason to know where every penny goes each month, for your financial health.

Spend money wisely and track expenses and your spending habits to begin enjoying the financial freedom you want most.

Leave a Reply

Your email address will not be published. Required fields are marked *