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
Pen and paper is the traditional way of keeping track of your personal expenses. It’s also the method many people still use, even though we’re surrounded by electronic devices.
Grab a Pen and Paper
I recommend you start by looking at what you spent money on last month. Once we get a handle on those numbers, we’ll be better prepared to create a budget and track expenses for the coming months.
Categorize Your Expenses