With the ever increasing cost of living and daily expenses, it is important to come up with an effective way of how to keep track of your expenses.
Tracking your expenses is very important as it not only enables you to understand how you spent your money, but also knowing which expenses you need to reduce or do away with in order to save money.
Some of the Ways You Could Use To Keep Track Of Your Expenses Include
- Using book and file method
- Using spreadsheet/excel
- Using expense tracking apps, sites and software
Using Book and File Method
The book and file method is the oldest method of expense tracking. Here you will have an accounting book where you will write down all your expenses with a file to store all your receipts and invoices. The expense book and file is usually organized according to date for easy and faster access. The main disadvantage of this method is that it can result in lots of paperwork.
If you have daily access to a computer, you could keep track of your expenses by using spread sheets or excel sheets. With these sheets, you can create a table and group your expenses into columns. The main advantage of using spreadsheets is that it is easy to use and does not require doing manual calculations as most spread sheets have built in functions to do any math.
One main shortcoming of spreadsheets is that it assumes you do not need to track your receipts or that you are storing them separately. Receipts are very important in any expense tracking strategy as they provide evidence of transaction/expense
Using Expense Tracking Software, Sites and Apps
Expense tacking software, sites and apps will enable you efficiently track you expense because they are specifically built for that purpose. After registering to an expense tracking site, app or software, all you will need to do is create an expense profile for yourself and start tracking your spending.
Tracking software and sites allow you upload you receipt for evidential purposes and the main advantage is that you will not have to worry if the physical receipt gets lost. In addition, expense tracking software and sites have built in accounting functions and will be able to generate expense reports for easy analysis.
Using expense tracking software, sites and apps are so far the most recommended method of how to keep track of your expenses.