Learning how to keep track of your personal finances is not difficult, but it does require a fair amount of time and discipline. The most important part of tracking your expenses in consistency. Following the methods below will help you down the path of becoming better with your money.

Create a Systems

Regardless of how you choose to log your expenses you have to be able to refer back to it easily. When creating a system:

• include important information
• Record consistently
• Categorize your expense

Keep a note book

Having a note book hand will help you to record transaction as the occurs. By recording all transaction, you will be able to keep track of every dollar received and spent. At the end of the week or month you can transfer to a software or spreadsheet.

Keep a check book

Keeping a check book might seem old fashion but it is a good way to keep track of all your bank transaction. Make sure you record checks, e-checks, ATM, debit card purchases, and any direct/bill payment made by your bank in your check book/register. You might want to write it down as it happens or for the direct/bill payment by your bank record them monthly with the date they are set to pay.

Use a Spreadsheet

Use an excel spreadsheet can be very helpful when tracking your expenses. The spreadsheet will calculate totals as transactions are entered. Once the spreadsheet is setup you can copy to use multiple times.

Analyze your Finances Monthly

At the end of each month spend some time to look at how you spend for the month and see if there is any adjustment you can make.  You can now make a budget.

Making a savings plan will help you to be more successful on your journey to better savings. It will help to keep you accountable and discipline. Most often if there is no plan in place or necessary tools to help along one usually tend to get discourage. While making the plan is simple the discipline to stay on the plan is very challenging.

Here are some simple tips to assist when setting up the savings plan.

Set a realistic goal

Start by setting a savings goal. It should be measurable, realistic and timely. You might feel ambitious and set a super-high savings goal, but you’d likely be setting yourself up for failure.

When deciding on a savings goal, think of a specific purchase or benchmark you could realistically reach in 12 months. The goal should require self-discipline and a little sacrifice when it comes to spending (it is a goal, after all), but you shouldn’t overreach.

Then, find a friend or family member who can hold you accountable, or write down the goal in a place where you’ll see it every day, like your planner.

Keep track of your spending

For one month, track every single penny you spend. You’ll learn exactly where your paycheck is going and where you’re overspending.

You might realize, for example, that you’re spending an obscene amount on coffee every week. Once you’re aware of that, you can limit your coffee-shop stops and put the rest of that money into savings.

Set a budget

Once you know your spending habits, you can create a realistic budget. Budgeting will help you save by helping you cut out frivolous spending. It might be a trial-and-error process until you figure out what works best for your lifestyle.

You don’t have to cut out all of the fun stuff, but you do need to pay your bills on time and eventually meet your savings goal.

Evaluate your Progress

In order to save effectively, you need to know exactly where you stand with your finances each week. Make a “money date” with yourself every Sunday and go through your transactions to ensure you’re on track with your budget. If you fall off track (maybe you spent too much one week or didn’t sock away a single penny from your paycheck), don’t give up! Get back on track.

When you hit savings goals, celebrate and reward yourself a bit. Saving is all about moderation, not cutting out shopping and spending completely.