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Why Should You Track Your Spending

The recent pandemic has caused many households to reevaluate their current spending habits. Given the present-day state of finances, it is important to closely monitor your budget and spending. Many people do not track the everyday expenses that make up a large part of our lives. Online shopping has made it even easier for us to spend without considering the impact it has on our budgets.

Knowing how much you have available can make important decisions easier. If you are spending $20 dollars a week on lunches while at work, is that something that you can then look to cut back on? That $20 adds up to over $1000 dollars a year. It is easy to swipe your card and not think about the miscellaneous expenses, that’s why monitoring your online account activity or monthly statements is vital.

Once you know where your excess money is going you can figure out if the costs are necessary or if you can divert those funds towards something else. That same $1000 a year could go towards paying down debt, purchasing a home or emergency savings instead of lunch.