5 Tracking Expenses and Spending
Tracking Expenses
It’s important to know where your money goes each month. You can use apps, spreadsheets, or even a notebook to track your expenses. This way, you can see if you’re overspending in one area and make adjustments.
How to Track Expenses
Start by Writing Down Your Income: Include your job’s paycheck, financial aid, or any other income sources.
Example: If you make $1,000 from a part-time job, that’s your total monthly income.
List Your Fixed Expenses: These are expenses that stay the same each month, like rent or subscriptions.
Example: Rent ($300), Netflix subscription ($10).
List Your Variable Expenses: These are expenses that change each month, like groceries, transportation, and entertainment.
Example: Groceries ($150), gas for your car ($50), movie tickets ($15).
Subtract Your Expenses from Your Income: This will show if you’re spending more than you earn. If you’re spending more than you’re making, you need to cut back in areas like eating out or entertainment.
Example of Expense Tracking:
|
Category |
Amount |
|
Income |
$1,000 |
|
Rent |
$300 |
|
Groceries |
$150 |
|
Transportation |
$50 |
|
Entertainment |
$50 |
|
Netflix |
$10 |
|
Savings |
$200 |
|
Total Expenses |
$760 |
In this example, you have $240 left over to either save more or use for personal spending. Tracking like this helps you see where your money is going and where you can adjust if needed.
