If you are in debt or if you know that you need to start keeping track of your spending then there are a couple of things that you can do about this, and it is more than possible for you to start turning your life around.
If you want to get started then you need to try and devote two weeks to tracking every single transaction that you make. When you do this, you can then go on to make a budget. This is a great starting point if you have never had to track your spending before and it is a great way for you to really make the most out of your finances. After you have your budget, it helps to track your spending after this point so you can see how your actual spending habits align with the budget that you have set for yourself. If you are finding it hard to keep track of everything then don’t worry, you’re not alone but with a little work, you can be sure to get a great result out of your activity in general.
Avoid Using Cash
If you need to, you can easily go back through your electronic records and you can also take a
look at your debit card, credit card, bank withdrawals and more. You can also keep a track of your Paypal transactions as well. But keeping track of your spending when you use cash can be much more difficult and it can make it seriously hard for you to budget. If you are able to stop buying yourself things with cash then you can easily spare yourself the hassle of having to manually record your spending. You can review your electronic records whenever you want and you can also access everything you need in one centralised location as well.
Hire a Professional
A management accountant should be able to help you to keep track of your spending and this is a great way for you to avoid tracking altogether. There are also a ton of apps out there that you can use to try and streamline your spending as well, and you’d be surprised at how easy these are to use. Some of them can even be integrated into your bank account as well, so when you do spend, you will get an alert stating how much you have overspent by.
The Envelope System
At the start of each week, you need to stuff an envelope with cash. Each one can have a set amount of money in it. When you have done this, label them according to what that money is for. This could be for your petrol, your lunch or even for your trip out with your friends at the end of the month. This is really a great way for you to keep track of your spending because you know exactly where the money is coming from, and when you overspend, you then have to decide what is going to suffer.