Welcome to our first article in a series where we share step-by-step tips on how to manage your hard earned money better.
#1: Simply start with recording all your daily spending
To kick start this series, you need to start recording all your expenses and get a better understanding where money were spent. The good old pen-and-paper technique works just fine but if you prefer to have them recorded in your smartphone, you can start with downloading apps like Mint, Spendee, Wally and Dollarbird to track your daily, monthly and yearly spending behaviour. Try a few apps and see what works best for you.
Try to make this a daily habit as you might forget what you have already spent on last week if you are doing this on a monthly basis. On top of that, you might even spend more time trying to recall and filling in the missing pieces compared to filling it in on a daily basis. Try not to think about it as a hassle as you will get use to it over time.
In addition, draft a simple budget to limit your spending which will eventually help you in getting all the necessities of the month (or maybe you could even save a huge chunk at the end of the month!). On a monthly basis, allocate a budget for must-spend like transportation, utility bills and etc. On the other hand, list down yearly expenses such as car insurance or school tuition fees and divide them equally over the year to get the monthly figure.
Tracking your expenses is a great start to better understand your monthly spending. In Tip #2, we will share tips in analysing your spending patterns and the interest of making wiser financial decisions for your wallet – WalletFriend Wisdom Tip #2 – Who takes the biggest bite?