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An Introduction to Expense Tracking

An Introduction to Expense Tracking

    Who doesn’t have a goal for the new year that involves money? Many of us have goals that involve making more money or managing the money we already have — but, no matter exactly what goal you might have for your money, you’ll probably need some baseline information about it. While understanding your expenses is basic, they make up some of the most important information you can gather about where your money goes. Tracking expenses can be a relatively simple matter and can provide you so much information about your spending habits.

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    Whether you’re working on creating a budget or you are trying to simplify the bookkeeping for a small business, tracking your expenses should be a first step. If most of your spending is done electronically (using a debit card or a credit card), you may be able to get away with just tracking your cash spending. Most money management software can automatically import those electronic expenses, further simplifying matters. You can also choose to use your own system, from the ground up, including setting up a spreadsheet and entering information by hand.

    Getting In The Habit of Tracking

    When it comes to tracking expenses, you can make your system as simple as collecting receipts and organizing them once a month. You might get a little more information from other expense tracking systems (listing them in a spreadsheet, using money management software or even choosing an online application), but all methods have one thing in common: you have to get in the habit of thinking about your expenses. It’s very easy to misplace a receipt or forget about any cash you spent. You may even think that a cup of coffee or a trip to the vending machine isn’t worth tracking — although those little expenses can add up amazingly fast. There are all sorts of opportunities to throw a kink into your plan to track expenses. You have to get in the habit of doing so, to reduce those lapses, and make sure that the data you’re basing financial decisions on is solid.

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    It’s also worthwhile to track your income in the same system that you track your expenses. This may seem like a no-brainer, because many people think that they only have one source of income: the salary that they receive from their job. In truth, however, most of us have additional sources of money, whether we hold a yearly garage sale, freelance or receive rebates. If you choose an application specifically created to track expenses, you’ll find that most have some sort of tool for inputting information about your income as well. If you decide to use a system of your own devising, such as a list of expenses in a spreadsheet, you’ll need to clearly separate income and expenses — place them in different columns, make one negative or denote the difference in another way.

    Using Your Information

    Once you’ve built up a lot of information about your expenses, you can use it to make a number of different financial decisions. You can easily broadcast your future spending — and plan out a budget. If you aren’t comfortable with the amount of spending you’re doing, you can also use all those expenses you’ve been tracking to help you set limits and finding places where you can reduce your spending. If, for instance, you notice a lot of lunches out, you could cut those expenses by committing to brown-bagging on a more regular basis. As long as you already have information on your expenses in hand, you can use it to make a long list of decisions much easier.

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    A Few Online Options

    While you could use a notebook or a spreadsheet to track your expenses, there are more than a few tools online that are able to handle all the details — and may have a few additional features thrown in:

    • Xpenser: If you’re always on the go, Xpenser can be a good option. It allows you to text your expenses in, helping you ensure that you don’t forget to track your spending between the store and home. In addition to SMS, you can email, Twitter, IM, call or manually add your expenses.
    • Moneytrackin’: For tracking expenses in multiple accounts — such as business and personal — Moneytrackin’ provides easy management of expenses between those accounts. You can also tag transactions and budget easily.
    • Mint: While Mint only tracks your expenses made through a bank account (checks, debit cards, credit cards), it does integrate expense tracking with a whole host of other features, including tools to help you analyze your spending and automatic expense categorization.
    • Buxfer: Another site that primarily tracks expenses made through bank accounts, Buxfer also has tools to help organize shared expenses — such as splitting the rent with a roommate.
    • Shoeboxed: You can add expenses by hand to Shoeboxed, but the site’s real value is that (for a price) they’ll scan in your receipts and upload them to your account on the site. If you do a lot of spending with cash, this site can truly simplify matters.

    No matter which option you decide to go with, I do think it’s worthwhile to pick a system that is as automatic as possible — writing down everything by hand and entering it into some sort of money management program just seems like a fast way to use up a lot of time. If you use another tool besides those listed above and really like it, please share it in the comments.

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    Last Updated on May 12, 2020

    8 Steps to Continuous Self Motivation Even During the Difficult Times

    8 Steps to Continuous Self Motivation Even During the Difficult Times

    Many of us find ourselves in motivational slumps that we have to work to get out of. Sometimes it’s like a continuous cycle where we are motivated for a period of time, fall out and then have to build things back up again.

    There is nothing more powerful for self-motivation than the right attitude. You can’t choose or control your circumstance, but you can choose your attitude towards your circumstances.

    How I see this working is while you’re developing these mental steps, and utilizing them regularly, self-motivation will come naturally when you need it.

    The key, for me, is hitting the final step to Share With Others. It can be somewhat addictive and self-motivating when you help others who are having trouble.

    A good way to have self motivation continuously is to implement something like these 8 steps from Ian McKenzie.[1] I enjoyed Ian’s article but thought it could use some definition when it comes to trying to build a continuous drive of motivation. Here is a new list on how to self motivate:

    1. Start Simple

    Keep motivators around your work area – things that give you that initial spark to get going.

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    These motivators will be the Triggers that remind you to get going.

    2. Keep Good Company

    Make more regular encounters with positive and motivated people. This could be as simple as IM chats with peers or a quick discussion with a friend who likes sharing ideas.

    Positive and motivated people are very different from the negative ones. They will help you grow and see opportunities during tough times.

    Here’re more reasons why you should avoid negative people: 10 Reasons Why You Should Avoid Negative People

    3. Keep Learning

    Read and try to take in everything you can. The more you learn, the more confident you become in starting projects.

    You can train yourself to crave lifelong learning with these tips: How to Develop a Lifelong Learning Habit

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    4. See the Good in Bad

    When encountering obstacles or challenging goals, you want to be in the habit of finding what works to get over them.

    Here are 10 tips to make positive thinking easy.

    5. Stop Thinking

    Just do. If you find motivation for a particular project lacking, try getting started on something else. Something trivial even, then you’ll develop the momentum to begin the more important stuff.

    When you’re thinking and worrying about it too much, you’re just wasting time. These tried worry busting techniques can help you.

    6. Know Yourself

    Keep notes on when your motivation sucks and when you feel like a superstar. There will be a pattern that, once you are aware of, you can work around and develop.

    Read for yourself how the magic of marking down your mood works.

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    7. Track Your Progress

    Keep a tally or a progress bar for ongoing projects. When you see something growing, you will always want to nurture it.

    Take a look at these 4 simple ways to track your progress so you have motivation to achieve your goals.

    8. Help Others

    Share your ideas and help friends get motivated. Seeing others do well will motivate you to do the same. Write about your success and get feedback from readers.

    Helping others actually helps yourself, here’s why.

    What I would hope happens here is you will gradually develop certain skills that become motivational habits.

    Once you get to the stage where you are regularly helping others keep motivated – be it with a blog or talking with peers – you’ll find the cycle continuing where each facet of staying motivated is refined and developed.

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    Too Many Steps?

    If you could only take one step? Just do it!

    Once you get started on something, you’ll almost always just get into it and keep going. There will be times when you have to do things you really don’t want to: that’s where the other steps and tips from other writers come in handy.

    However, the most important thing, that I think is worth repeating, is to just get started.

    Get that momentum going and then when you need to, take Ian’s Step 7 and Take A Break. No one wants to work all the time!

    More Tips for Boosting Motivation

    Featured photo credit: Japheth Mast via unsplash.com

    Reference

    [1] Ian McKenzie: 8 mental steps to self-motivation

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