I think it’s fair to assume that we all want more money. What if I told you there was a way to see more of your hard earned money without adding another job or side hustle to your plate. Tracking your expenses will allow you to save more and worry less.
Four years ago I started tracking my expenses each month and I will never look back. I feel like I have so much more control over my spending. I know exactly where each dollar (yes, every single dollar!) goes each month and I have been able to save so much more in the process.
I’m hoping to take my savings to the next level this year. The majority of my 2022 goals are budget related. My fiancé and I are planning to buy our first home, we’re saving for our wedding, and we want to start investing in stocks and retirement. Consistently tracking my expenses has given me the confidence to make financial decisions and work towards large savings goals.
The first step to creating any real budget is to figure out what your expenses are. You can’t assign money to different categories of your life if you don’t know what you typically spend in those areas. For the past few years, I have been using the Numbers app to track all of my expenses. This app is completely FREE and it is already installed on all iPhones.
There’s nothing stopping you from reaching your financial goals! If you are ready to start tracking your expenses, follow these quick and easy steps!
This post is all about how to start tracking your spending.
Step 1: Search for the Numbers app on your iPhone
This app should already be installed on your iPhone. If it is not, simply search “Numbers” and it should pop up!
Step 2: Choose a Template
There are a variety of different templates to choose from on the Numbers app. I suggest the “simple budget” template. It’s user-friendly and has exactly what I need for my personal expenses.
This particular template is SO simple! With a foolproof data entry system and color-coded graphics, this template is by far my favorite. There are only two places where you’ll have to insert data. The first is the “Money In” table. This is where you will keep track of your income. The second is the “Money Out” table. Here, you’ll insert all (yes all!) of your expenses. From your monthly rent or mortgage to the $3 cup of coffee. It ALL goes into the “Money Out” Table.
The Numbers app will automatically subtract your expenses from your income leaving you with a “Money Left Over” amount. The goal is to have more money in than money out each month!
Step 3: Personalize the Template
Once you’ve chosen your template, it’s time to personalize it to fit your needs. Stay organized and create a template that suits you best! Below you can see what the original template looks like. Delete or add any items to personalize the template for your own budgeting needs!
- Rename your template – I always name my template with the month and the year. This allows me to easily search for prior months. Trust me…as your budgeting journey continues, you’ll want to look back at your old saving and spending habits!
- Delete any default data – Many of the Numbers templates have default entries already entered into the tables. This provides a great example and starting point. However, you will definitely want to delete any of the dollar amounts to ensure the spreadsheet is only calculating your data.
- Create your own categories – In the “simple budget” template there are default categories provided. If you like the way the categories are set up feel free to keep them! Personally, I like to itemize my expenses, and then categorize them at the end of the month. In order to do this, I delete all of the default entries. For example, instead of using the category “Utilities”, I will write “WiFi” and enter the dollar amount for WiFi only. Or, “Electric” and enter the dollar amount for my electric bill only. There is no right or wrong way to do this. It is all about personal preference. Find what works for you!
Step 4: Start Inputting your Data
Money In: If you are in a salaried or fixed-income position you should be able to enter your paycheck amounts at the start of each new month. Otherwise, you’ll have to wait and enter the amount as the money flows in.
Money Out: Each time you pay a bill or spend any amount of money, be sure to enter it into your spreadsheet. At first, this may seem tedious and time-consuming, but I promise you it will become a quick and easy habit! It’s so convenient having the app right on your phone.
Step 5: Stay Consistent
The only way you’ll get an accurate depiction of your spending habits is to track all of your expenses. Be sure to stay consistent throughout the month. After a few months, you’ll have a clear picture of what your average expenses are. From there, you’ll be able to create practical budgets that will allow you to reach all of your savings goals!
My Top 3 Tips for Tracking Spending
- Track as you go! Whenever you swipe your card, take out your phone and enter the amount into your app. You’ll be surprised how easily you can forget that you spent money earlier in the day! There have been countless nights when I would be getting ready for bed and trying to remember where else I spent money that day. Enter the amounts as you go and you’ll never run into this problem!
- Track without judgment! It can be easy to see your expenses pile up and want to stop tracking right then and there. After all, who really wants to admit that they may have to take a step back from shopping or going out to eat? I suggest for the first three months, you just track your expenses without changing your habits. Do not worry about the amounts. Just simply track and see where you are honestly spending your money. No judgment. You’ll be able to create better spending habits when you can see the full and honest picture.
- Track by the month! It can be overwhelming to think about tracking or creating realistic budgets. Oftentimes, we create savings goals based on 1, 5, and 10-year plans, or even as far out as retirement. Breaking your income and spending into monthly increments allows you to track it on a smaller scale. Take it one month at a time. The small changes and habits you create month after month will help your long-term goals.
You’ve got this! Happy tracking.
This post was all about tracking your expenses using a user-friendly and FREE budgeting app!
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