Keeping track of your money is perhaps the most important part of saving. Many people bury their heads in the sand and try to forget how much is in their account. I know I have done this especially when I was a student and there was a night out to pay for. But trust me it is important to know how much is in your account at all times.
Method 1. Notebook
You can do this the old-fashioned way and go to the bank and get your bank statement. Then keep track of your expenditures by writing them all down in a little notebook. This is a tried and tested method for keeping track of household expenditures. It has been used for thousands of years, so nothing wrong with doing it this way if it’s what you prefer.
Method 2. Bank account updates
This next way is really nice if you just have the one bank account that you use for most of your spending. These days nearly all banks can send a text or instant message alerts showing your balance and recent expenditures. This is great because with very little effort you can see how much is in your account. Most big banks even have apps that allow you to check your balance and make payments too. The only downside to this method is that you cannot see exactly what you have spent your money on so it is hard to make your budget or figure out what you need to cut back on if your spending is too high.
Method 3. Mobile APPS
You can get apps to help you keep track of your money. These apps can be very useful as they can show you a lot of data such as how much you are spending on clothes or food. This can be very useful for people that are trying to crack down on their spending and don’t necessarily know where their money is leaking out.
However, I found that it can be quite difficult to keep track of since you have to update it after every purchase you make and if you are someone like me that can make lots of small purchases in a day it can become quite tiresome. I would recommend the app called Wallet made by budget bakers. It has a good layout packed with features and is easy to use.
Method 4 – Spreadsheet
Finally, my current personal favourite keeping a spreadsheet with all my finances and updating it every few weeks or every month. I like this method because it allows me to see how much I have and predicted how much I will have in the future. This allows me to see if I need to tighten my purse strings or if I am doing better than I expected. It is also fairly hands-off and doesn’t require constant checking and inputting of data like some of the other methods. And personally, unless you are doing a hardcore saving month which I would encourage from time to time then you don’t need to be checking all the time, it’s important to not let your money own you.