This will prevent you from forgetting to add small items that add up. The best way to keep track of your expenses is to record each item in real-time (i.e. Once you have printed an expense log template what do you do with it? Record each item It is difficult to find these patterns when you don’t track each expense.

For example, when you see how much you spent on coffee at Starbucks every month, you might decide to make coffee at home and take it with you in a reusable thermal coffee cup. When you record every dollar spent, you will be able to find previously hidden patterns. We offer many budget templates that will help you track your expenses. The idea here is to record every single transaction in a budget sheet with columns for the date, the item purchased, and the total cost. Tracking your expenses is another popular budgeting system.Always try to keep a buffer on the side just in case you receive a bill you’d forgotten about. Divide your monthly budget into weekly installments or create cash envelopes for each expense.

To make the transition to cash only, see the cash envelope system.

You will also save credit card charges, interest payments, and your monthly credit card bill. As soon as you start paying with cash instead of plastic, you will spend less.

With the cash system, you switch as many financial transactions as possible to cash.

Different people will prefer different approaches. There are two basic approaches to budgeting: the cash system or tracking your expenses.

Monthly expenses and income worksheet