SubscribeCategorizing Expenses
Some people track their finances well, but fail to utilize the spreadsheet to its fullest potential. If you break down your expenses into enough common categories, you will easily be able to compare the figures from month to month in determining where adjustments in your lifestyle need to be made. If you are going out for dinner too often, then you will be more conscious of your behaviors. Having financial restraint, coupled with conscious spending habits will serve you well.
Another benefit of using an excel spreadsheet is that you can scan through your expenses and determine what costs can be reduced or eliminated completely. I try to make a game out of it by seeing what costs I can cut out and apply that extra capital towards my retirement and investment accounts. A certain saying comes to mind, “a penny saved is a penny earned.”
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