The first step to managing your money is to actually understand what happens to the money once you get it. If you don’t know what you’re spending on, you can’t cut back and start saving. However, it’s near-impossible to mentally keep track of all the money that you’re spending. Here are 3 easy tips that will help you track your spending and see where your money is going.
Get An App That Helps You Track Your Spending
The first step (rightfully) is to just download an app that helps you track your money. If you’re not sure about apps that do this, Dollar Bird is a great app to start with. At the end of every day, you get a prompt to fill in your spending for the day, and then at the end of the month, you can see an overview of where your money went. If entering data into an app isn’t for you, here are some other things you can do to make it easier to track your spending:
Take Exactly The Amount Of Money You Need
One reason why most people can’t seem to be able to remember where their money went is that a lot of it went to unplanned and impromptu spending. That’s usually what happens when you’re carrying more money around than you need, especially when you’re going shopping. It’s hard not to buy all the nice things that you don’t need when you can easily pay for them. When purchases are planned, it’s easier to remember what you budgeted for what. You might even have a budget beforehand.
Don’t Lend Money You’re Not Comfortable Losing
Lending is also one of the reasons that people have trouble keeping track of their money. When you lend to people and they’re paying you back in partial payments it becomes that much harder for the money to make it back into your account. It’s difficult to be accountable when money is coming to you in just small enough amounts to spend without feeling too guilty.