A spending plan is a tool that allows you to track your income and expenses. Tracking your expenses by using a spending plan is a very important second step to verify the accuracy of your cost of living.
There are a number of ways to track expenses:
- Keep all receipts; tally for the month or the week
- Use debit for all expenditures and check your online or hard copy statement to see where you money has gone
- Write down all purchases/spending in a notebook and tally at the end of the week/month
When you have completed 1-2 months of tracking your expenses you will know where and how you spend money.
Are you ready to get started? Try using the following spending plans: