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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 March 13, 2019

    How to Get out of a Rut: 12 Useful Ways to Get Unstuck

    How to Get out of a Rut: 12 Useful Ways to Get Unstuck

    Have you gotten into a rut before? Or are you in a rut right now?

    You know you’re in a rut when you run out of ideas and inspiration. I personally see a rut as a productivity vacuum. It might very well be a reason why you aren’t getting results. Even as you spend more time on your work, you can’t seem to get anything constructive done. While I’m normally productive, I get into occasional ruts (especially when I’ve been working back-to-back without rest). During those times, I can spend an entire day in front of the computer and get nothing done. It can be quite frustrating.

    Over time, I have tried and found several methods that are helpful to pull me out of a rut. If you experience ruts too, whether as a working professional, a writer, a blogger, a student or other work, you will find these useful. Here are 12 of my personal tips to get out of ruts:

    1. Work on the small tasks.

    When you are in a rut, tackle it by starting small. Clear away your smaller tasks which have been piling up. Reply to your emails, organize your documents, declutter your work space, and reply to private messages.

    Whenever I finish doing that, I generate a positive momentum which I bring forward to my work.

    2. Take a break from your work desk.

    Get yourself away from your desk and go take a walk. Go to the washroom, walk around the office, go out and get a snack.

    Your mind is too bogged down and needs some airing. Sometimes I get new ideas right after I walk away from my computer.

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    3. Upgrade yourself

    Take the down time to upgrade yourself. Go to a seminar. Read up on new materials (#7). Pick up a new language. Or any of the 42 ways here to improve yourself.

    The modern computer uses different typefaces because Steve Jobs dropped in on a calligraphy class back in college. How’s that for inspiration?

    4. Talk to a friend.

    Talk to someone and get your mind off work for a while.

    Talk about anything, from casual chatting to a deep conversation about something you really care about. You will be surprised at how the short encounter can be rejuvenating in its own way.

    5. Forget about trying to be perfect.

    If you are in a rut, the last thing you want to do is step on your own toes with perfectionist tendencies.

    Just start small. Do what you can, at your own pace. Let yourself make mistakes.

    Soon, a little trickle of inspiration will come. And then it’ll build up with more trickles. Before you know it, you have a whole stream of ideas.

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    6. Paint a vision to work towards.

    If you are continuously getting in a rut with your work, maybe there’s no vision inspiring you to move forward.

    Think about why you are doing this, and what you are doing it for. What is the end vision in mind?

    Make it as vivid as possible. Make sure it’s a vision that inspires you and use that to trigger you to action.

    7. Read a book (or blog).

    The things we read are like food to our brain. If you are out of ideas, it’s time to feed your brain with great materials.

    Here’s a list of 40 books you can start off with. Stock your browser with only the feeds of high quality blogs, such as Lifehack.org, DumbLittleMan, Seth Godin’s Blog, Tim Ferris’ Blog, Zen Habits or The Personal Excellence Blog.

    Check out the best selling books; those are generally packed with great wisdom.

    8. Have a quick nap.

    If you are at home, take a quick nap for about 20-30 minutes. This clears up your mind and gives you a quick boost. Nothing quite like starting off on a fresh start after catching up on sleep.

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    9. Remember why you are doing this.

    Sometimes we lose sight of why we do what we do, and after a while we become jaded. A quick refresher on why you even started on this project will help.

    What were you thinking when you thought of doing this? Retrace your thoughts back to that moment. Recall why you are doing this. Then reconnect with your muse.

    10. Find some competition.

    Nothing quite like healthy competition to spur us forward. If you are out of ideas, then check up on what people are doing in your space.

    Colleagues at work, competitors in the industry, competitors’ products and websites, networking conventions.. you get the drill.

    11. Go exercise.

    Since you are not making headway at work, might as well spend the time shaping yourself up.

    Sometimes we work so much that we neglect our health and fitness. Go jog, swim, cycle, whichever exercise you prefer.

    As you improve your physical health, your mental health will improve, too. The different facets of ourselves are all interlinked.

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    Here’re 15 Tips to Restart the Exercise Habit (and How to Keep It).

    12. Take a good break.

    Ruts are usually signs that you have been working too long and too hard. It’s time to get a break.

    Beyond the quick tips above, arrange for a 1-day or 2-days of break from your work. Don’t check your (work) emails or do anything work-related. Relax and do your favorite activities. You will return to your work recharged and ready to start.

    Contrary to popular belief, the world will not end from taking a break from your work. In fact, you will be much more ready to make an impact after proper rest. My best ideas and inspiration always hit me whenever I’m away from my work.

    Take a look at this to learn the importance of rest: The Importance of Scheduling Downtime

    More Resources About Getting out of a Rut

    Featured photo credit: Joshua Earle via unsplash.com

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