Tracking personal expenses is an integral part of the budgeting process. The best way to track your personal expenses is to develop a system to know where every dollar is being spent.
This is a habit that needs to be developed. Expect to experience some pitfalls before you get it right.
You won’t be able to make a budget unless you begin keeping track of your personal expenses. This doesn’t mean just checking your account statements from time to time.
Tracking Expenses Will Help You Budget
By writing down your expenses in a notebook, you will have to focus solely on that. There is something about writing down numbers that solidifies it in your brain which is why I recommend pen and paper, at least to start.
Grab a Pen and Paper
Know that you won’t be able to effectively keep track of how much you’re spending unless you group your expenses.
Categorize Your Expenses