How to Track Your Money
Keeping track of your money helps you stay on top of important basics such as:
- How much you have
- Where it comes from and when
- Where you need to spend it
- How much you need to spend and when
Fortunately, it doesn’t need to be a complicated process. Putting together a simple budget (spending plan) identifies necessary expenses (housing, food, transportation, tuition) and the not-so-necessary ones, such as going out for pizza instead of eating at home. A cash flow statement tracks when you spend your money.
Together, they help you prioritize and make sure you don’t spend more money than you have.