We all understand the importance of money and the absolute necessity of having savings as and when we can. Thanks to all the financial advice that is available and repeated all the time. But how do we achieve that never-land of finances and savings? How do we track our expenses so we can eventually cut down on them to grow our savings? Here is a list of things that can get your tracking and savings game on point-
The best way to keep your control over your money is to tell it where to go. Although you can not always know where you might need to spend your money; but you can always chalk out a rough estimate and that will surely help. Make a plan for the day/week/month. There is no one size fits all here. Go with whatever works the best for you, you will figure it out in just a couple of tries. Go ahead and start planning.
A lot of people find themselves lost due to the fact that they are micromanaging their finances. You might not be able to monitor every teensy bit of money you have to spend your money on but you can still categorize your expenses. For example- cab to work and cab to the mall can both be categorized in the same category called conveyance. Once you have categorized your expenses in this manner, you will be able to understand what is the major part of your income.
Now, this is again something you will have to figure out a way to do according to what suits you best. If you are more of a pen and paper person, you can always carry a notebook around to keep a record of your expenses. If you make most of your purchases through a debit/credit card, your account balance sheets can come in handy. If you are a mix of both online and offline modes, you might find an expense tracking app quite helpful. Our personal recommendation will be using expense trackers so that you can also track who you have lent money to and keep a track of those expenses as well.
A lot of people spend a major chunk of their income in paying unwanted interest and late fee payments. This is something that you can most definitely save on and plan beforehand. How do you ask? The answer is automation. Automate your monthly EMI payment and credit card bill settlements in order to spare yourself from the late fee payments and interest on your credit card bills.
Once you have done analyzing your budget, comes the most important step in moving towards a healthier and more responsible financial life- making changes. Cut down on unnecessary expenses and see how your savings grow over time.
So there you go, now you can keep track of your expenses and enhance your savings at the same time. Happy savings!
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