Collect all your receipts.
Keeping track of cash purchases can be difficult because when it’s gone, it’s gone. Save your receipts and set aside time to record each cash, card and online purchase or use a banking or budgeting app so you’ve got an accurate overview of your finances once the month ends.
Record your outgoings.
Keeping track of what you’re spending can be as simple as a keeping a log in a notebook, the note-taking app on your smartphone, a spreadsheet or a dedicated app. Most online bank accounts track and organize electronic transactions automatically and with many you can either view online or download the data as a spreadsheet. If your records are clear and you update them consistently, they will allow you to track your outgoings over time and make projections for the coming month, quarter, or year.
Once you know where your money is really going, you may be surprised. Consider how you can adjust your habits to save money. This is more likely to be around discretionary or variable expenses like clothing and meals out, rather than fixed expenses like mortgage, rent or utilities, which don’t change much month to month.