Hey everyone, I’ve been tracking my expenses for the past 2 years and managed to increase my savings by 8 times. I wanted to share some unexpected insights that might help others. First, inflation feels way more personal than what headlines suggest. I always read about inflation rates but never noticed it in my real life. After about a year of tracking expenses, I discovered that it’s hard to track based on weeks or even months. With the same expenses and quality of life, my budget started to feel tight. This realization was disappointing, but I decided to focus on increasing my income instead of quitting my tracking habits. Second, there are no typical months. I found that my expenses varied widely due to unexpected costs like car repairs and holidays. Building a buffer for these surprise months is essential. Third, tracking expenses makes impulse buying harder. Knowing I’d have to log purchases made me think twice. Fourth, I finally understood where my money actually goes. I realized my coffee habit was costing me $180 a month, and subscriptions were eating $85 each month. Finally, adjusting your budget and finding your comfort zone is crucial. Don’t set hard limits without knowing your actual spending. The first few months should be testing months. You should get to know your habits and expenses. Lastly, while real peace of mind might be elusive, tracking gives you control over your finances.
The first few years are common to have things go over budget. When that happens, consider giving that expense its own line item. This way, you can fund it, and in the future, it won’t go over budget because it’s already budgeted for.
@Noah
That’s good advice. Thank you.
I feel like anytime someone starts tracking their spending, they are shocked by food expenses. Food expenses will expand to fill all available space you give it.
Teal said:
I feel like anytime someone starts tracking their spending, they are shocked by food expenses. Food expenses will expand to fill all available space you give it.
I struggled with overspending on food when I made $12 an hour and still struggle making six figures. I’ve accepted that food makes me happy and I’m willing to spend on it.
Your point about ‘normal months’ being rare really resonated with me. I’ve been using a budget app for over a year and needed to see this. Life throws unexpected expenses our way, and it’s important to accept that.
@Drew
Your story is exactly what I meant. Accepting the chaos can reduce stress. Hope things turn around for you soon.
Can you give any advice on how to start tracking? I get caught up in the details, like when I spend $120 at a store for multiple categories. It seems daunting to calculate how much goes where.
Channing said:
Can you give any advice on how to start tracking? I get caught up in the details, like when I spend $120 at a store for multiple categories. It seems daunting to calculate how much goes where.
I had similar issues. Initially, I had categories recommended online, but that didn’t work for me. I experimented and found a setup that suited me better.
The best part of budgeting is that you can see exactly where your money is going in real time. Without a budget, it feels like guessing, which is not a great strategy.
Lyric said:
The best part of budgeting is that you can see exactly where your money is going in real time. Without a budget, it feels like guessing, which is not a great strategy.
I completely agree. It seemed I was on the right track, but I wasn’t saving and was living paycheck to paycheck until I started tracking.