Everyone dreams of getting rich but very few actually work towards that goal. Here in this blog we speak about how to get rich by increasing our savings and investing those savings into something that creates even more wealth. However in order to save properly, the first thing you need to do is to start tracking down your expenses.

Why Do We Track Expenses?

The most common line you’ll hear among people these days is “I don’t know where I spent my money“. This is bound to happen if you do not keep a detailed track record of your expenses. You cannot save properly if you don’t have a clue as to where your money is going. We spend our money everyday on things like petrol, food, household items, medicines, bills, fees etc. If you really wish to move forward with your goal of getting rich and emerge as a successful money savor, then you must immediately start tracking your expenses on a monthly basis from today.

Once you have a track record of where exactly are you spending your money every month, you can analyse those figures, find out all the unnecessary spending and cut down on it. Trust me, you will realise that you are spending a lot of money than you actually think you are on unnecessary things. And once you get those figures correctly, you can optimise your spending in a way that will allow you to save much more than you do as of now. You will have a clue about every penny that is going out of your pocket and I’m sure you will love it.

How To Track Your Expenses?

Make a diary and start writing down about every rupee you’ve spent. Or if you are too lazy to do that like me, then I suggest you to create an Excel sheet and maintain all the records there. You can use its calculation feature to automatically do the totaling as well. Easy?

Create A Budget

The word budget is not just for the government and is pretty much valid for us also. Now that we are tracking our expenses and we know the exact amount being spent where, we can go a step further and make a budget for the next month. Plan how much are you willing to spend on each expense category. If you feel that you are over spending somewhere, you can prepare a budget that allows you to spend less on that certain thing. A lot of times we carelessly spend, like I spend a lot of money in eating outside food, so a monthly budget can really save me from over spending on it. That way I can better optimise my spending and save better.

Related posts:

1. Which category do you fit in?
2. Passive Income And It’s Benefits
3. Why Do We Save Money?