Living frugally, where do I start? I think that I already live quite thrifty, I for example pay attention to what I spend, I use home made cleaning products, I try to limit our waste … but as I mentioned in my previous blog, there’s still a lot of room for improvement.
I think that a good way to start (or continue) living frugally would be by first of all focussing on my spending. I have a sense of how much money my boyfriend and me spend each month, however I have no idea where our money exactly goes to. We can save a lot of money each month but I don’t know the exact amount we give on food, clothes, going out … We’ve created a budget for most household items (such as groceries) but we don’t really reflect back on the accuracy of our estimates. So maybe I have a completely wrong sense of our expenses. It is possible that in my mind several purchases are forgotten or are considered as futile (such as that box of chocolates that I bought yesterday), giving me a completely false sense of being thrifty and could have a big impact on my financial future.
So I think it would be good to start tracking our expenses. Just writing everything down and dividing our expenses in different categories, to get a view of our spending habits (we will definitely need a separate category for chocolates). It would be a good exercise to see where our money goes to, and it will help us to budget our expenses in the future!
At the moment I am figuring out which tracking system would be best. I can for example write everything down in a notebook, use a spreadsheet application on the computer, or use an app. I think I prefer using an app because it allows me to add my expenses on my Smartphone wherever I am.
A quick browse on the internet shows that there are numerous apps that can help me with this, I can enter my income and expenses, divide them in different categories and get a nice overview of what I spend each month for each category. Some apps can even help me to create a budget and tell how much money is left per category. The only ‘difficult’ part is finding a good app since there are so many to choose from. Based on a first quick search me and my boyfriend like dollarbird, spendee and accounts 2, but there are many more so in the following months I will test several money tracking apps including these three and see which one fits best to our needs. I will of course write a review on these apps in the next few weeks. I will also keep you up to date on how tracking my expenses works out for me. My boyfriend and I are very curious to see whether we spend as much money on food, clothes, going out, electricity … as we think we do, or whether we spend much more than we thought.