For the longest time, I never had a system to keep track of how I spent my money until I finally decided to put it all down on paper and everything changed. Keeping track of how much you spend on takeouts, your phone bills will most likely help you change your spending habits. This will also help you when you finally go into budgeting and saving your money.
Create a financial system
This means that its important to make something that you will be able to refer to every time. This could be keeping note of all your transactions I a note books or spreadsheet either daily, every other day or weekly.
You could also note down important information like the date, the amount spent or gained with a separate expense category. An expense category may include housing, pets, personal entertainment, healthcare, and groceries. Your categorizing must be consistent between transactions.
Check your account statements
As you begin, note all your expenses using your bank statements and use it as a reference point as you begin changing and noting all your spending habits. This will also help you compare your expenses several months before.
This will lead you to journey to financial freedom.
Keep a checkbook to track your money
Ckeck books may be deemed as fashioned but they are also very effective at keeping track of finances. You put in how much you have spent and what you have spent it on and at the oend you can easily add or subtract the amount from the account totals.
Using a personal finance application
There are several applications you can use to track your expenditure on your phone. They are wildly convenient because you can keep track when you are on the go.
The applications do a lot more than just tracking your finances but also help you budget and display all your assets in one place.
Track your habit and set goals
Setting a habit is not always easy to do but can help you achieve so much more. You can decide to save towards going for a vacation, emergency fund, or even education. Your goal does not have to be trying to save towards having a million dollars.
The most important thing is starting.