Tracking your monthly spending is a very important part of planning a personal household budget. How many times have you asked yourself or your spouse, “I just don’t know where all the money went this month?” Knowing where you are spending every penny of your income is very important and only takes a few minutes of your time each day. You will probably realize just how much money you waste each month.
When it comes to tracking your monthly spending there are a few different options available from pen and paper to highly sophisticated computer software programs. Of course there are many other options in between, some free and some every expensive.
There are no excuses for not tracking your spending. Anyone can use a couple of sheets of wide ruled notebook paper and a pen. Simply write down the date of each transaction, how much you spent and where you spent the money. There are spreadsheet solutions that allow you to record the same information but automatically do the math. There are also complex software solutions to download or purchase that will basically do the same thing.
Record your spending for one month and you will quickly realize the categories where you are overspending. This will help you create a detailed budget showing you which categories you need to cut back your spending. Having this information will put you on the path to building a successful budget and leading you down the road to financial success and freedom!