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How to Keep Track of Your Money

Mrunal Belvalkar Mar 12, 2019
"How many times have you heard someone say, if I had his money I could do things my way?" Johnny Cash asked, and we applauded. The problem is - we do have good money in our hands, only we fail to realize how and where we spend it. Find out how to keep track of your money by reading further.
Before we see how to keep track of your money, here is a test. Ask yourself these questions, and answer 'yes' or 'no'.
  • Do I owe anyone money?
  • Do I borrow money too often?
  • Am I usually late to pay my bills?
  • Have I put off doing something that I actually need to get done but can't because I can't afford it?
  • Do I run out of money before my next paycheck arrives?
If you answered most of the questions 'Yes', there is no other way to break it to you but to say - you need help! It is not everybody's cup of tea to manage their personal finances. However, the good news is, you can learn to do it pretty soon and quite effectively. The tips given here on how to keep track of your money are going to help you save money.
It is never a good idea to live paycheck to paycheck; so if you don't want to do that, use the tips given further and start keeping a tab on your money!

Ways to Keep Track of Your Money


Know the exact contents of your wallet. That does not mean you should keep track of every single penny that you put in or remove from your wallet. But it always helps to know how much money you have in your wallet.
It even saves you from embarrassment - what if you were to have coffee with a nice girl in a nice cafe and you discovered you had no money left in your wallet?
Tip: Check in the morning before you leave the house how much money you have in wallet. Even if you find some of it missing, you have only a day's expenses to cross-check and trace back missing money.


It is best to keep track of your expenses to know how much money you spend and on what. Many times it so happens that we do not remember how much money we spent. We buy a box of liquor chocolates and forget about it.
We pick up a bottle of wine on our way to someone's house and forget we did. And then we rack our brains trying to remember where it is that the money was spent! So keep a track of your expenses. You can keep a record in a small pocket diary. If you want to be all pro, you can do the same on an iPad!
Tip: Do this daily (at the end of the day, before you hit the sack) and you won't even have to keep a diary! It is not important to actually 'write' down all your expenses; even a mental check can suffice, as long as you are absolutely sure.


This is how credit cards work (in the simplest, crudest terms) - they (credit union) give you money to use for free. They give you a time limit within which you have to return the money.
But if you fail to return it in that time, they charge you an interest such that you eventually end up returning a lot more than you borrowed! Now the problem is, somewhere we have this psychological block in our heads - credit card is somebody else's money, so even if I overspend, 'my' money is still intact. So we tend to overspend.
But that is so wrong, for we all know that ultimately we have to pay the credit card bill from our own money. Plus credit card bills are always unbelievable. We take one look at the bill, and we are like 'Damn! When did I spend that much money?'
Tip: Switch to using an ATM card or a debit card. That way, you would think twice before spending, as it would be 'your' money. Also all your transactions will show in your monthly bank account statement. It makes keeping a track easier.


Set a budget and do not spend more than that. If you do, make sure to keep a track of what you spent the extra money on. Did you indulge in a shopping spree? Did you lend anyone money? Were you hit by some unexpected expenses? Medicine? Dinner? Trip?
Keeping track of your money when you are out on a small trip, holiday or vacation becomes almost impossible. Everybody is in the mood to spend. It is essential you set yourself a budget to keep track in such cases.
Tip: Keep a comfortable margin. Too low a budget can make it seem like you are overspending all the time, when actually you are not. It can bog you down! Take into account all your monthly expenses before setting a budget.


Monitor your bank account vigilantly. It is the world of e-banking, so be sure you subscribe for electronic monthly statement of your account, and ensure you actually go through the statement and check for any transactions that seem fishy or unaccountable.
There can be a possibility of theft which cannot be overruled. Credit card scams are not something unheard of. A lot of people have a lot of reasons (though wrong ones) to tamper with people's bank accounts. It is better to be careful than sorry!
Tip: Train yourself to read through the bank statement carefully. Do not simply throw it in the trash can. It hardly takes a few minutes. Also report any unusual transactions immediately, without further ado.
So those were some personal finance tips that will help you keep track of your money. Train yourself to deal with money responsibly. You can inculcate responsibility in your children right from their tender years, so that they learn to use money carefully from an early age. Everything in life is not about money, true.
But many important things are - food, clothing, shelter, medical help, for starters. So it is always a good idea to save and invest. Hope the shared tricks and tips help you out. Cheers!