SECTION 3
Why is it important to track expenses?
If you are not sure where your money goes or why and how you are spending, it is difficult to identify the habits you can change to reduce your expenses.
While a budget helps you set priorities and allocate your income for spending under various heads, tracking expenses identifies if the money was spent as budgeted.
Effective tracking of expenses is one of common trait of financially successful people and organizations.
Tracking expenses could be a monotonous chore for those who do not understand its potential, but for those who understand; it the basic constituent of wealth accumulation.
Use whatever means you are convenient with, to record and track expenses, on a daily basis.
Try to include all expenses, no matter small or big. Using a smart phone application, to instantly record expenses is a very good idea, as it takes not more than a minute, and because you can do it instantly, it is less likely you will forget.
If you are not comfortable with the smart phone applications, do not worry, a small notepad, that can fit in your pocket also will do.
Once you have at-least 3 months of expenses tracked, you will be surprised with the insights, they will provide you.