4 Expense Tracking Tips to Setup an Accurate Monthly Budget • Properly Track Your Monthly Expenses - vTomb

4 Expense Tracking Tips to Setup an Accurate Monthly Budget • Properly Track Your Monthly Expenses

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Build Wealth By Budgeting How to Setup an Accurate Monthly Budget How to Setup an Accurate Monthly Budget 💰 How Should I Track My Monthly Expenses?| Proper Budgeting. 4 Money Budgeting Tips

Our goal in this video is to help you understand your monthly expenses and spending habits so that you can begin to setup an accurate monthly budget for yourself or family. This what to do before you actually build your first budget. I really encourage you to watch this whole video because I really think it is going to be worth your time.

Without an accurate budget:

1. We are extremely more likely to go into debt and stay in debt
2. We are less likely to save money because our spending is out
of control
3. We are literally driving our-self into poverty because of the first
two things I just mentioned.

There are a total of 4 steps to this process:

1. Find a shoebox, bag, container, etc. and place it somewhere in your home where it is easy to access.

2. Make a 3 month commitment to your personal finances

3. Gather the Data

4. Summarize and calculate each type of expense at the end of each month.

Keep ALL receipts, invoices, bank statements, credit statements for the next three months and place in shoe box whenever you bring new one home. The point of having all of these statements is so you have full visibility of your expenses and spending habits over the next three months. If your bank statements and bills are paperless go online, and download your statements to your computer so you can easily access them because you will need them for the next step.

Consider writing notes on the receipts or statements so you what each expense related to. Give examples groceries, oil change,
****Tip to help you not lose receipts, and statements before they make it into your shoe box carry a ziplock bag.

At the end of each month what I need you to do is look at the receipts, bank statements, credit statements, etc and begin categorizing your expenses on paper or in a program such as Microsoft excel. When I first did this I started on paper, but I would use excel. You are going to have general experience categories and then sub categories.

(Example) Car expenses, fuel, oil changes, repairs, Groceries and household supplies, Utilities, water sewer garbage, mortgage payment, rent, you guys get the idea.

Do this for the each of the three months and develop a 3 month average for each expense listed. Now you will have solid numbers to use to start constructing a very accurate monthly budget. Show example

I would bet that if you have never done this exercise before that you likely do not know your numbers. I had the privilege of seeing Kevin O Leary from shark tank speak live on stage a few weeks ago in Las Vegas. He says that people who make it in business know their numbers, and those who do not fail. It is as simple as that.

The same is true for our personal finances. If you and I do not have accurate numbers for our monthly we are going to fail financially. I don’t know about you, but I’m not working as hard as I am to die broke.

So there you have it guys. It doesn’t take long to go through these steps. It is about an hour or two of your time each month. Do this for three months and you will be on your way to having a very accurate budget that you can use for the rest of your life without having to tweak it much.

In a future video we will start building a real budget and learn how to unexpected expenses.
Related Articles:

How to create a working budget: http://www.wikihow.com/Create-a-Working-Budget

Budget tips for first timers: http://www.moneycrashers.com/how-to-make-a-budget/

Tips for a more accurate budget: http://businessknowledgesource.com/finance/tips_for_a_more_accurate_projected_budget_025293.html

Track your expenses with mint:http://lifehacker.com/5725282/how-to-create-and-stick-to-a-realistic-budget-with-mint


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The information presented in this video is not to be taken as legal or tax advice. MKChip is dedicated to teaching financial literacy and subjects that matter so you can live your life Uncaged!

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