Don’t let the tracking pile up.

At the end of dinner, I always do the dishes (or, if it’s not my turn, insist they get done). It’s not that doing the dishes is fun or I love doing them, but the alternative is worse. The food is caked on, the kitchen smells, it feels overwhelming, and frankly, it’s gross. I certainly have left dishes, but I always deeply regret it. Waking up to a pile of dishes slows the next day down because I’m dealing with an issue from the day before, instead of getting to start the day with a clean slate. 

Reviewing and tracking your expenses regularly is sort of like doing the dinner dishes right after dinner. It isn’t the greatest or most fun thing to do, but it’s not so bad if you do it right away, and it’s much more unpleasant to do if you don’t keep up with it. 

I recommend reviewing your accounts a few times a week. You don’t have to look daily at them daily, but do it regularly enough that you can clearly identify each and every purchase you make. The goal is that you have certainty and clarity around what you are buying. You want to know that you are staying within your budget and you know what you have available to spend. You want to know that you are spending on things that are aligned with your values and goals.

The other reason to track your spending regularly is to ensure that only you are spending your money. If your card is stolen or used without your permission, you must notify your bank or card company immediately. Your income is a precious asset and you want to make sure you, and only you, are using it. 

What does it look like to review and track your expenses? First, you want to look through each credit and debit card and checking account that you have. Then, write down (or use my free tracking template) each expense from each account, the date that you made the purchase, what was purchased, and what category of your budget it belongs to. If you want to take it a step further, identify whether each purchase was a need or a want. You want to review your expenses every few days, but not less than once a week. This will keep you mindful about what your buying, whether you have funds available in each category, what funds remain in each category, and whether you’re on track in your budget.