First of all, what is budgeting?

 

Budgeting means ensuring your expenses never exceed your income, so you maintain financial balance and avoid accumulating debt (financial trouble) over time. Now, for this is also important to implement expense tacking techniques.

 

Moreover, expense tracking is the habit of recording every transaction—every expending, big or small—as it happens, so you always know exactly how much you’ve spent and on what thing. This visibility prevents surprise shortages, uncover leakages in your budget, etc.

 

There are various techniques, but each one would work better depending on each persona that uses it, so one technique may work better on you but no so well on other, it a matter of identifying which one you want to use.

 

For example:

• Write down each expense in a small notebook or planner.•Use programs like Microsoft Excel or Google Sheets to list and categorize expenses.

• Allocate a set amount of cash to envelopes labeled for each spending category (e.g., “Groceries,” “Entertainment”) (When an envelope is empty, you’ve reached that category’s limit)

• Link your bank and credit accounts to a financial dashboard so transactions flow in real time.

• Group expenses into groups (Needs vs. Wants, Fixed vs. Variable) to quickly see where cuts or reallocations are possible.

• ETC