Tracking Every Penny Spent
First Time Visitor? Welcome
FinancialLearn.com is dedicated to finding great deals, free stuff, and promote frugal living. We are delighted to have you here.
Sound Fun? Have our articles delivered to you via RSS Feed or E-mail to be reminded of new and upcoming contests and articles.
Try comparing money to water. People can’t live without it and it easily goes through our fingers. It is an important part of life therefore it shouldn’t be taken for granted. Many people earn a lot of money, yet they can’t figure out where all their money went to. Tracking down every penny you spend will help you see your spending style. This will help you see where to budget, save and cut down. Doing this every night is hassle and annoying at first, but it will become second nature once you get used to it.
Step 1
Create an expense list and write it in a notebook or ledger. Look for something that is comfortable for you to use. If you don’t have any background on accounting, a simple notebook will do. Use a ledger if you want. Some people use theirPDAs to track down their expenses. Most PDAs already have pre-installed software that allows you to track down expenses, if you have one, try to make the most out of it.
Step 2
Gather your receipts you accumulated within the day. Once you entered into a transaction, keep the receipt in you wallet. If some transactions do not involve receipts, write them down quickly before you forget about it. For example, you gave a 5 dollar tip to a waiter, write down that you gave a 5 dollar tip or you can make a mental note about it.
Step 3
At the end of the day, write down where you received your money and how much it is. Next, write down your daily expenses. The receipts that you keep will guide you in this process. There are several ways to write them down. You can write down everything without having to organize them into general categories like food, electricity or transportation. Try to remember anything else you spent on that is not covered by a receipt. Once you are done with that, keep your receipts in a shoebox or an envelop so that your wallet will be emptied of receipts and you can begin the process for another day.
Step 3
Copy the exact amount stated in the receipt. Try as much as possible not round off anything. Total your expenses for the day. You can subtract the total from the amount you are supposed to have. This will give you the amount that is supposed to be inside your wallet.
Step 4
Never put off listing down your expense for another day! Try to do this daily because if you do this weekly or monthly, you’ll likely lose receipts and forget about other transactions. Some people even do their accounting instantly. The moment they spend or receive something, they immediately enter it into their PDA or notepads. This is better since, you’ll be guaranteed never to miss out a thing.
Step 5
Keep your notebook/ledger in a safe place along with your receipts. Don’t carry your ledger/notebook around for everyone to see. Don’t lose it. If you lose it, you will also lose time, effort and a well-made record.
Related Posts
- How to Keep track of your Money the Easy Way
- How to Write a Check
- Formatting a Budget
- Preventing Credit Card Fraud
- How to Deal with a Lost Wallet
- Medicare Catastrophic Drug Coverage
- How Not to Lose Money
