How to Track Your Monthly Expenses

A Guide to Using Spreadsheets and Apps to Track and Categorise Expenses

Certaingly managing your finances requires a clear system for tracking and categorising your monthly expenses. Whether you prefer the customisation of spreadsheets or the convenience of financial apps, both options can provide a solid framework for gaining control over your money. Here’s a practical guide on how to use each tool to monitor your expenses and maintain financial discipline.

Using Spreadsheets to Track Monthly Expenses

A spreadsheet offers you the flexibility to organise your finances exactly how you want. Here’s a simple step-by-step guide to get started:

1. Create an income section: Firstly, start by listing all sources of income at the top of your spreadsheet. This could include your salary, rental income, or side jobs. This gives you a clear picture of how much money is available each month.
2. List your expenses: Secondly, write down your income; create categories for both fixed expenses (such as rent, utilities, and loan repayments) and variable expenses (like groceries, entertainment, and dining out). This helps you break down where your money is going and allows for easier tracking.
3. Use formulas: Subsequently; one of the benefits of using spreadsheets is the ability to use simple formulas to calculate your total expenses, remaining balance, and even your savings. A basic subtraction formula can automatically show you how much is left over after all expenses are deducted from your income.
4. Track monthly: Each month, input your actual expenses into the relevant categories. This allows you to compare your budgeted amounts with what you’ve spent, helping you adjust your spending habits if necessary.

Spreadsheets give you full control, allowing you to add as much detail as you like, and they are cost-effective, with platforms like Google Sheets offering free access.

Using Financial Apps to Track your Monthly Expenses

For instance; those seeking a more automated approach, financial apps can simplify the process of tracking and categorising your expenses. There are many financial apps available, each offering different features. Some popular options in Australia include:

1. Moneymanager: An easy-to-use app that automatically syncs with Australian banks, categorising your transactions and providing a clear overview of your spending habits.
2. MMEX (Money Manager EX) : This app provides a holistic view of your finances, including bill tracking and budgeting tools.
3. YNAB (You Need A Budget): Known for its focus on proactive budgeting, YNAB helps you create a plan for every dollar you earn.

Which Option is Best for You?

In conclusion, both spreadsheets and apps have their strengths when it comes to tracking your expenses. If you prefer a hands-on, customisable approach and enjoy having control over every aspect of your finances, a spreadsheet may be the better option. On the other hand, if you value convenience and automation, financial apps offer a streamlined solution that makes tracking expenses easier and more efficient.

Ultimately, the best tool is the one that fits your lifestyle and financial goals. You might even choose to combine both approaches—using a spreadsheet for detailed tracking and analysis, while using an app for on-the-go monitoring and real-time insights.