If you have already made your
financial plan and
rough budget workup now is the time to start seriously tracking your expenditures.
In my experience, tracking your spending is the
single most important step when it comes to successful budgeting. Anyone can make a budget, then go through the month "trying" to be careful, only to check at the end of the month and find yourself way over. Trust me, I know from experience.
You are not budgeting unless you are tracking your spending.
Not only is this the most crucial step when it comes to your budget, it can also be the hardest. It is hard because it will open your eyes to how much you waste. It is hard because it will force you to cut back. It is hard because it can be time consuming.
I tell you these things in advance so you know it's not just you. Now, you will be prepared for these hard things when they come up and you will have the strength to forge ahead. You're welcome.
Okay fine Jessica! We will track our spending already... but how do we do it?
There are multiple ways you can track your spending. Almost every budgeter will track in one of the three ways described below.