What are your spending habits?

What are your spending habits? Do you know how much money you spend on electricity, groceries, clothes … each month? And do you have an idea when some yearly/quarterly costs such as for example insurance, or the electricity bill appear?

Until two months ago, my boyfriend and I had a general idea of how much money we spent each month on groceries, clothes, stuff for in and around the house … but we had no exact idea. We also didn’t have the habit to each month reflect back on how much we had spent. So, two months age we started tracking our expenses to get an overview of where exactly our money goes and what our spending habits are.

In the beginning it was a bit of a search to find a good tracking system that worked for us. I started with testing some apps on my Smartphone since I thought it would be easier than on a spreadsheet on the computer or than writing everything down in a notebook. I tried the apps Dollarbird and Accounts 2 Checkbook.

I was immediately quite fond of Accounts 2. It is a very simple and nice app where you can insert your spending day by day, link it to your different bank accounts, and divide your spending in different categories of your choice. I think I liked the app because it is very handy to have an overview of the balance of your bank account (or accounts) on your phone. This overview also helped when I had forgotten to include a purchase and had to check the bank account (which happened a lot in the beginning). The app also allows you to each month retrieve a graph with your spending per category, or you can export a file with all transactions.

I also tried Dollarbird, which is an app that works with a calendar interface. Instead of getting an overview of your bank account, you get an overview of the month and how much money you have spent each day. You can also divide your spending in different categories. It’s a really nice app but I quickly stopped using it since I preferred to use Accounts 2 because of the overview of your accounts.

For the past two months I inserted all our expenses in Accounts 2. In the beginning I often forgot it but after a few weeks it started to become a habit to keep the receipts and include all expenses. Because of this, I can each month retrieve an overview of our spending per category which is super handy and a great way to start spending money in a smart way and budgeting expenses.

In addition to a monthly overview, I also wanted to have an overview of our yearly/quarterly costs. So I decided to include all our expenses in a spreadsheet on the computer to get a more detailed overview than on the app. I made the same categories as in the app, and inserted every expense per month. I also checked my bank account for some big yearly costs such as insurance, the electricity bill… . Then I used a colour scheme to indicate the yearly costs and the costs that return every three months. Here you can find the spreadsheet I made (Expenses).

I’m really excited because with this overview we can exactly predict what our fixed costs are going to be in the coming months. Now we also know which months are going to be more expensive than others due to the addition of several (yearly) costs. A nice consequence is also that now I will know when I have to make my yearly dentist or eye specialist appointment. (Before I never knew how long it had been since my last check up).

With the combination of the app and the spreadsheet I have found a tracking system that works for my boyfriend and I. I don’t know if this system would work for some of you… But if you don’t track your money yet, I would suggest to start with it! It’s really nice to have an overview and to know how much money you actually pay each month on different kind of things. It really helps you to get a sense of your spending and can help you to better regulate how much money you spend on things (for example the things you need and the things you want but not need). In the end it will also help you to save more money …

If you already are tracking you expenses, feel free to share how you do it (with an app, a spreadsheet …). All tips and tricks are welcome.

For now my boyfriend and I will keep tracking our expenses and in a few weeks we will start budgeting.

Regards,
Fiona

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